Purchase consideration

Christeena Ambel

It can be understood from the question itself. First check whether all information about shares given to owners of vendor company is given or not. Information = no. Of shares + its value If it is given calculate pc using that information . If not given use net asset method. If some information about goodwill is given usually then net asset method is used. Net asset method should only be used if others cannot be used ie, information to use other methods are not given