Scribd Logo
Upload

Welcome to Scribd!

  • Groups - SOFP - Part 2

    Uploaded by

    Vidhi
    9 views7 pages
    The document summarizes the acquisition of Spearmint by Pepper Group. Key details include: - Pepper Group acquired Spearmint for total consideration of $2,115 including cash, shares, and deferred consideration. - Goodwill of $1,040 was recognized but later impaired by $258, leaving net goodwill of $782. - Spearmint contributed post-acquisition profits of $45, of which 80% ($36) increased Pepper's retained earnings and 20% ($9) increased non-controlling interest. - Deferred consideration of $375 increased to $454 including finance costs.

    Original Description:

    Original Title

    Groups_SOFP_Part 2

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document summarizes the acquisition of Spearmint by Pepper Group. Key details include: - Pepper Group acquired Spearmint for total consideration of $2,115 including cash, shares, and deferred consideration. - Goodwill of $1,040 was recognized but later impaired by $258, leaving net goodwill of $782. - Spearmint contributed post-acquisition profits of $45, of which 80% ($36) increased Pepper's retained earnings and 20% ($9) increased non-controlling interest. - Deferred consideration of $375 increased to $454 including finance costs.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    9 views7 pages

    Groups - SOFP - Part 2

    Uploaded by

    Vidhi
    The document summarizes the acquisition of Spearmint by Pepper Group. Key details include: - Pepper Group acquired Spearmint for total consideration of $2,115 including cash, shares, and deferred consideration. - Goodwill of $1,040 was recognized but later impaired by $258, leaving net goodwill of $782. - Spearmint contributed post-acquisition profits of $45, of which 80% ($36) increased Pepper's retained earnings and 20% ($9) increased non-controlling interest. - Deferred consideration of $375 increased to $454 including finance costs.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 7

    W1 Group Structure

    Pepper

    Spear (80% 1-Jan-13

    Rep date 31-Dec-14

    W2 Goodwill $000
    Purchase consideration
    - Cash 1000
    - Shares 360
    - Deferred cash 375
    NCI 380
    Total A 2115

    Less: FV of net assets at DOA 1075


    Goodwill 1040
    Less: Impairment -258
    Net goodwill 782

    W3 Net assets DOA DOR Post acqusition profit


    Share capital 500 500 0
    RE 125 300 175
    FV adjustments
    Plant 200 120 -80
    Brand 250 200 -50
    1075 1120 45
    Split in 80:20
    W4 Group RE
    Peppermints RE 1,400
    Spearmint (80% of 45) 36
    Less: Impairment of GW (206)
    Less: Finance cost W6 (79)
    1,151

    W5 NCI
    Value 380
    Spearmint (20% of 45) 9
    Less: Impairment of GW -52
    337

    W6 Deferred consideration
    Initial 375
    Add: Finance cost 10% 38
    413
    Add: Finance cost 10% 41
    Current liab 454

    Finance costs 79
    Pepper Group - Cons SOFp 31 Dec 14
    NCA
    PPE 7120
    Brand 200
    Goodwill 782

    CA
    Inv 650
    TR 600
    Cash 250
    9602

    Equity
    Share cap (2000 + 200 x $1) 2200
    Share premium (200 x $0.8) 160
    RE 1,151
    NCI 337

    NCL 3400

    CL 1900
    Defererred cons 454
    9602
    Two methods to measure NCI

    Method 1: Fair value


    PC 1735
    NCI (Fair value) 380

    Less: Net assets 1075

    Goodwill 1040
    Less: Imapirment -258

    80% 20% Total


    Paid 1735 380 2115
    Net assets 860 215 1075
    875 165 1040
    Less: Impairment -206.4 -51.6 -258

    Goodwill Impairments

    Sit 1: NCI is at FV

    Impairment of goodwill will be shared by parent and NCI


    in other words you will take it to RE and NCI
    Method 2: NCI is measured on basis of proportionate net assets
    PC 1735
    NCI (proportionate NA) 20% 215

    Less: Net assets 1075

    Goodwill 875

    80% 20% Total


    Paid 1735 215 1950
    Net assets 860 215 1075
    875 0 875
    Less: Impairment -258 -258

    oodwill Impairments

    Sit 2: NCI is at prop basis

    Impairment of goodwill will ONLY be charged to the parent


    in other words you will take it ONLY to RE
    W1 group Structure

    Health

    Safety (90%) 1 Jan 20X2

    Rep Date 31 Dec 20X3

    Consolidated SOFP
    NCA Equity
    PPE 130 SC 15
    Goodwill 18 RE 169.8
    NCI 5.2
    CA
    Inventory 106 NCL 148
    TR 113
    Bank 15 CL 44

    382 382
    W2 Goodwill
    PC 34
    NCI (Fair value) 4

    Jan 20X2 Less: FVNA -10


    Goodwill 28
    1 Dec 20X3 Less: Impairment -10
    Net goodwill 18

    W3 Net assets DOA DOR Change


    Share capital 5 5 0
    Ret Earnings 5 31 26
    10 36 26

    W4 Group RE
    Health Re 159
    Safety RE 90% of 26 23.4
    Imapirment of GW -9
    Less: URP in inventory -3.6
    169.8

    W5 NCI
    Value 4
    Safety RE 10% of 26 2.6
    Imapirment of GW -1
    Less: URP in inventory -0.4
    5.2

    You might also like