Minority Shares Buyback

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Minority Shares Buyback
Amir, Member
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 AnswerSign up
enyaru antony, Member
Yeah, goodwill shall be 40 the non tangible value ...
 

 
Calculation of GoodwillSign up
Henry Steyn, Member
Goodwill = (number of shares purchased x pu...
 

 
GoodwillSign up
luckmore mutisi, Member
I agree with Enyaru Antony, goodwill will be 40 be...
 

 
Minority Shares BuybackSign up
Popoola Ife, Member
I agree with previous statements to the extent tha...
 

 
Minority Shares Buyback MethodSign up
Girish L. Chhagani, Member
Book value of shares = 10% (share capital + capita...
 

 
Minority Shares Buyback Accounting MethodSign up
Amir, Member
Thanks all, thanks for your input and advices, her...
 

 
 

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