Q1 The NCI can be calculated as follows:

Step 1: Calculate the goodwill on acquisition:

Consideration transferred:

(0.7 x 200,000) x $1.75 = $245,000

Net assets acquired at FV = CA of NA = $450,000

Goodwill on acquisition = Consideration transferred – Net assets acquired at FV = $245,000 - $450,000 =

-$205,000 (negative goodwill)

Step 2: Calculate the subsidiary's total equity at the acquisition date:

Total equity = Share capital + Retained earnings = $200,000 + $450,000 = $650,000

Step 3: Calculate the NCI at the acquisition date:

NCI = (1 - P's share) x Total equity = (1 - 0.7) x $650,000 = $195,000

Step 4: Calculate the NCI share of post-acquisition profits:

NCI share of post-acquisition profits = NCI x (Retained earnings at 31 March 20X9 – Retained earnings at
acquisition date) / Total equity at acquisition date

NCI share of post-acquisition profits = $195,000 x ($750,000 - $450,000) / $650,000 = $78,000

Step 5: Calculate the NCI carrying amount at 31 March 20X9:

NCI carrying amount = NCI at acquisition date + NCI share of post-acquisition profits - Dividends paid to
NCI

Dividends paid to NCI are not provided in the question, so it is assumed that no dividends were paid.

NCI carrying amount = $195,000 + $78,000 - $0 = $273,000

Therefore, at 31 March 20X9, the NCI should appear in the C-SoFP of P at $273,000.
Q2 The total consideration paid by Husband for the 60% holding in Wife is:

$250,000 cash + $400,000 payable in 1 year + (50,000 shares in Husband / 2 shares acquired) = $525,000

To calculate the goodwill arising on acquisition, we need to first determine the fair value of Wife's net
assets at the acquisition date:

Fair value of Wife's net assets = $850,000 - ($850,000 x 0.4) (NCI) = $510,000

We can then calculate the goodwill as follows:

Goodwill = Total consideration paid - Fair value of net assets acquired - FV of NCI

Goodwill = $525,000 - $510,000 - $400,000 = $15,000

Therefore, the goodwill arising on acquisition is $15,000.

Q3 The calculation of the consideration attributable to P for the acquisition of Sardonic involves two
components:

1. The value of the equity shares issued by P to acquire 18m shares of Sardonic:

Number of shares issued by P = (18m / 3) x 2 = 12m shares

Value of shares issued by P = 12m x $5.75 = $69m

2. The cash consideration paid by P on 31 July 20X9:

Cash consideration paid by P = 18m x $2.42 = $43.56m (since P acquired 18m out of 24m shares)

Total consideration attributable to P = $69m + $43.56m = $112.56m

Next, we need to calculate the fair value of net identifiable assets (NA) of Sardonic as of August 1, 2007.
Given that goodwill was measured at $22.5m, we can calculate the total fair value of Sardonic as
follows:

Total fair value of Sardonic = Consideration attributable to P + Non-controlling interest (NCI) + Goodwill

$22.5m = $112.56m + NCI + $22.5m

NCI = $0

This means that the fair value of net identifiable assets of Sardonic as of August 1, 2007 was equal to the
consideration attributable to P, which is $112.56m.
Q4 First, we need to determine the fair value of Bang's net assets at the date of acquisition.

Fair value of net assets = RE + Revaluation surplus + Valuation of brand name

Fair value of net assets = 570,000 + 150,000 + 90,000

Fair value of net assets = 810,000

Since NCI acquired 70% of Bang's ordinary shares, they would also have 70% ownership of the
fair value of net assets.

NCI's share of fair value of net assets = 70% x 810,000

NCI's share of fair value of net assets = 567,000

To compute for the fair value of NCI, we need to subtract NCI's share of fair value of net assets
from the purchase price:

Fair value of NCI = Purchase price - NCI's share of fair value of net assets - Goodwill

Fair value of NCI = 800,000 - 567,000 - 110,000

Fair value of NCI = 123,000

Therefore, the fair value of NCI at the date of acquisition is Birr 123,000.