Dear All,

Request your valuable advice on the entries to be passed in the books of 1. Consolidated company 2. Stand Alone Parent Company for the purchase of shares on March 1,2009 and also the treatment of Goodwill.

Company X had already acquired 50 % of shares of Company Y 2 years back for a cash consideration of $65,000(Total Value of Common Stock/shares #1000).The parent company has been recording the investment under equity method and as on Feb 28,2009, the carrying value of investment is $69,000 (after considering the post acquisition share of profits).

On March 1,2009, the parent company has purchased the balance 50% shares for a consideration of $1 , the networth of the company Y being negative ($269K) as on Feb 28,2009.

Please advice what entries needs to be passed under 1. IFRS 2. USGAAP.

Please quote relavant accounting standards, wherever necessary.

Thanks

Regards

Ganesh

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