On 1 July 2014 Bycomb acquired 80% of Cyclip’s equ
ity shares on the following terms:
–a share exchange of two shares in Bycomb for every three shares acquired in Cyclip; and
–a cash payment due on 30 June 2015 of $1·54 per share acquired (Bycomb’s cost of capital is 10% per annum).
At the date of acquisition, shares in Bycomb and Cyclip had a stock market value of $3·00 and $2·50 each respectively.
Required:
(a)Calculate the consolidated goodwill at the date of acquisition of Cyclip.
(b)Prepare extracts from Bycomb’s consolidated statement of profit or loss for the year ended 31 March 2015, for:Kaplow
(i)revenue;
(ii)cost of sales;
(iii)finance costs;
(iv)profit or loss attributable to the non-controlling interest.