Group Account: Fair Value Adjustment for Non-controlling interest


When computing for goodwill, the fair value of the non-controlling interest is used rather than the book value. In doing this, the NCI’s share of the net assets acquired is replaced with the fair value to determine the goodwill.
Mom Plc acquired 68% voting rights of Daughter Plc on 1st January, 20x1 when the reserves of the latter were N65million. The respective statements of financial position of the two companies as at 31st December, 20x2 are as follows.

If the fair value of the non-controlling interest is estimated to be N142million as at 31st December, 20x2, prepare the consolidated statement of financial position.
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