Minority Shares Buyback

Finance and Investing

Best Practices

Sign up

Amir
Accountant, Egypt

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,.

  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 (...)

Start a new forum topic

 

Finance and Investing



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2021 12manage - The Executive Fast Track. V15.8 - Last updated: 7-12-2021. All names of their owners.