CAT / FIA FFA Syllabus G. Preparing Simple Consolidated Financial Statements - Share for share exchanges. - Notes ^{8 / 11}

Share for share exchanges form part, or all, of the cost of investment which is used in the goodwill calculation.

If this exchange has yet to be accounted for, the double entry is always: -

Dr Cost of Investment
Cr Share capital (with the nominal value of P shares given out)
Cr Share premium (with the premium