Question

PT Melati on July 1, 2015 acquired PT Lawu net assets at an acquisition price of...

PT Melati on July 1, 2015 acquired PT Lawu net assets at an acquisition price of 25,000,000,000. In the acquisition, PT. Melati pays cash to PT. Lawu of Rp.200,000,000 and the remainder with 1,000,000 shares issued with a nominal value of 1,000. PT. Melati shares are not traded on the capital market so they do not have fair value. The fair value of the net assets of PT. Lawu is Rp 20,000,000,000. PT. Melati issued a consultant fee of Rp. 2,000,000,000 and share registration fee of Rp. 5,000,000,000.

Requested: Calculate the goodwill of the acquisition!

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*price of Rp25.000.000.000

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Answer #1

Goodwill is the amount paid in excess of the fair value of net assets of the acquiree company.

Goodwill = Cost of Business combination - Fair value of Net assets of the acquiree co.

Cost of Business Combination to PT Melati
Particulars Amount (Rp)
The acquisition price of Net assets 25,000,000,000
Add: Expenses directly attributable to the acquisition
a) Consultant fees 2,000,000,000
b) Share registration fees 5,000,000,000
Cost of the business combination 32,000,000,000
Calculation of Goodwill for PT Melati
Particulars Amount (Rp)
Cost of business combination 32,000,000,000
Less: Fair value of Net assets of PT Lawu (20,000,000,000)
Goodwill 12,000,000,000
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