Goodwill on consolidation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 June 2010 Dear all, pls treat this query as urgent..
if an entity is holding 100% in its subsidiary...and in the current year, makes additional equity investment still holding 100%, will goodwill on consolidation arise?

Note 1: Goodwill did not arise during 1st investment
note2: shares are issued at par

urgent pls

Kaustuv

Kaustuv (Expert)
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14 June 2010 If shares are issued at par, then how the goodwill will arise? I have purchased shares (face value of Rs. 100) by paying Rs. 100 only. Now at the time of consolidation, my investment and the share capital of the subsidiary will exactly square off.