Minority Shares Buyback

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Minority Shares Buyback
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,.

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		Amir Accountant, Egypt
	2 Minority Shares Buyback Accounting Method Thanks all, thanks for your input and advices, here is what has been done which I consider complies with your opinion: I booked it as 100 investment and 40 goodwill for the shares buyback booking. And as the normal process, at the end of the financial period, the goodwill are tested (as per mention by most of you) and impairment is booked in the acquiring company however this impairment, and only the impairment, is eliminated on the consolidated level as with this treatment the impairment is considered as intra-company investment. The goodwill remains unchanged on the consolidated level. Appreciated your valuable commenting on the above treatment.

		Girish L. Chhagani Coach, India
	1 Minority Shares Buyback Method Book value of shares = 10% (share capital + capital reserves and surplus as on date of purchase of shares) If the book value per share > 140 than treat the difference as capital reserve. If book value per share < 140 than treat it as goodwill. Thanks.

		Popoola Ife Accountant, Nigeria
	1 Minority Shares Buyback I agree with previous statements to the extent that there is still positive goodwill of 40. That is, if goodwill has not been tested for a drop in value (impairment). However, in the last scenario it appears that goodwill has been impaired as value of company has fallen from 140 to 80. Thus we need to do two things. First, we write-off the 40 goodwill currently in the holding company's books. Next, in the same/current year when goodwill dropped the holding company will expense 20 as part of accounting for total impairment (60) to goodwill. These entries will bring the value of the acquired company to 80. In summary, we have applied the prudence concept.

		luckmore mutisi Student (MBA), Zimbabwe
	1 Goodwill I agree with Enyaru Antony, goodwill will be 40 because the cost was 100 and selling 140. The difference is the non tangible value called goodwill. (...)

		Henry Steyn, South Africa
	1 Calculation of Goodwill Goodwill = (number of shares purchased x purchase price) - [(total number of shares x par value + retained earnings)/total number of shares)] x number of shares purchased. (...)

		enyaru antony Business Consultant, Uganda
	1 Your Answer Yeah, goodwill shall be 40 the non tangible value of the purchase since the cost originally was 100, then went to 140 -the difference is the non tangible value called goodwill. (...)