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

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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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