Lily Bakeries, located in Belgium, specializes in biscuit and cake products. Lily owns 75 percent of Hearty Foods, a French company acquired on January 1, 2010, for cash and stock totaling €150 million. Hearty’s book value at the date of acquisition was €70 million. Its assets and liabilities were fairly reported at the date of acquisition, except for these items: It is now December 31, 2014. Impairment testing on the acquired goodwill reveals that total impairment during the years 2010-2013 was €2.5 million, and impairment in 2014 is €0.75 million. Lily uses the complete equity method to account for its investment internally. The December 31,2014, trial balances of Lily and Hearty follow: Lily follows IFRS and uses the IFRS alternative valuation for goodwill and noncontrolling interests. Required a. Calculate the total goodwill arising from this acquisition. b. Prepare a schedule calculating Lily’s equity in net income of Hearty and the noncontrolling interest in Hearty’s net income for 2014. c. Prepare a working paper consolidating the trial balances of Lily and Hearty at December 31,2014. View Solution:
Lily Bakeries located in Belgium specializes in biscuit and cake
Submit Your Assignment and get professional help from our qualified experts!
Lily Bakeries, located in Belgium, specializes in biscuit and cake products. Lily owns 75 percent of was first posted on June 29, 2020 at 7:32 am.
©2019 "Submit Your Assignment". Use of this feed is for personal non-commercial use only. If you are not reading this article in your feed reader, then the site is guilty of copyright infringement. Please contact me at email@example.com