Minority Shares Buyback

12manage is hiring MBA students!


 
Finance and Investing > Best Practices Premium

Minority Shares Buyback
Amir, Accountant, Egypt
Hi, I'd like to ask about accounting for shares buyback for the following case:
10% of the shares of company A are owned by an investor. Company B buys those 10% shares from the third party investor. Company A and B are subsidiaries and their parent is a holding company (consolidation) the both financials are represented there.
Par value of the shares was 100 and the purchase price is 140. On company B investment with recorded with cost (140), on the consolidated financial, shall we record only the excess of par value (40) as goodwill or we should re-valuate the shares' fair value (assume at the moment of acquiring the 10%, the share fair value was 80) and the difference (140 - 80 = 60) should be recorded as goodwill?
Thanks for advising,.... Register

 
 
Your Answer
enyaru antony, Business Consultant, Uganda
 
 
Calculation of Goodwill
Henry Steyn, Analyst, South Africa
 
 
Goodwill
luckmore mutisi, Student (MBA), Zimbabwe
 
 
Minority Shares Buyback
Popoola Ife, Accountant, Nigeria
 
 
Minority Shares Buyback Method
Girish L. Chhagani, Coach, India
 
   
    Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  
   
 



More on Finance and Investing

Forum

Best Practices
Expert Tips

Resources

Copyright 2016 12manage - The Executive Fast Track. V14.0 - Last updated: 2-5-2016. All names tm by their owners.