Minority Shares Buyback

Finance and Investing

 

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Finance and Investing > Best Practices

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,. (...) Read more? Sign up for free

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  enyaru antony, Business Consultant, Uganda
 

Your Answer

Yeah, goodwill shall be 40 the non tangible value (...)

  Henry Steyn, Analyst, South Africa
 

Calculation of Goodwill

Goodwill = (number of shares purchased x purchase (...)

  luckmore mutisi, Student (MBA), Zimbabwe
 

Goodwill

I agree with Enyaru Antony, goodwill will be 40 be (...)

  Popoola Ife, Accountant, Nigeria
 

Minority Shares Buyback

I agree with previous statements to the extent tha (...)

  Girish L. Chhagani, Coach, India
 

Minority Shares Buyback Method

Book value of shares = 10% (share capital + capita (...)

  Amir, Accountant, Egypt
 

Minority Shares Buyback Accounting Method

Thanks all, thanks for your input and advices, her (...)

 
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