# Acquisition consolidation workbook

> This free Excel workbook works through goodwill and the non-controlling interest on an acquisition under both measurement methods, the pro-rating of a company bought part-way through the year, the remeasurement in a step acquisition, and a partial disposal with and without loss of control. Every sheet uses formulas, every journal balances, and the example figures are labelled.

Source: https://finconsol.com/blog/resources/acquisition-consolidation-workbook/ (updated 28 October 2026)

| Sheet | What it works out | Example result (GBP) |
| --- | --- | --- |
| Goodwill | Goodwill and the non-controlling interest under both measurement methods, with the journal | Goodwill 400,000 (proportionate share) or 460,000 (fair value) |
| Mid-year purchase | Only the days after the acquisition date, split between owners and non-controlling interest | Profit consolidated 387,223, of which 77,445 is the non-controlling interest |
| Step acquisition | Remeasures the earlier 30% holding, then goodwill on gaining control at 60% | Gain 120,000; goodwill 120,000 or 170,000 |
| Partial disposal | Selling part with control kept, and selling part with control lost | Equity 10,000 in case A; gain 230,000 in case B |

*The four sheets and their example results*

## How to use it

1. **Goodwill:** enter the consideration, the fair value of the net assets, the share bought and the fair value of the non-controlling interest. Choose the method and read the journal.
2. **Mid-year purchase:** enter the financial year, the acquisition date and the monthly revenue and profit. Only the days after the acquisition date are consolidated.
3. **Step acquisition:** enter the earlier holding, its carrying amount and its fair value, and the further interest bought.
4. **Partial disposal:** enter the holding and the share sold. Case A keeps control; case B loses it.
5. **Check the journals.** Each shows Balanced when the debits equal the credits.

## Who is it for?

Group controllers and finance managers preparing their first consolidation after buying a company, and accountants who advise them. It follows IFRS 3 and IFRS 10, and the notes say where US GAAP differs. The ideas are explained in the glossary: [goodwill](/blog/glossary/goodwill/), [non-controlling interest](/blog/glossary/non-controlling-interest/) and [step acquisition](/blog/glossary/step-acquisition/). When these entries recur every month, [Finconsol keeps ownership, non-controlling interest and acquisition dates in one place](https://finconsol.com/financial-consolidation-software/).

## Questions

**Which method should I choose for the non-controlling interest?**

IFRS 3 lets you choose, deal by deal: a proportionate share of the net assets, or fair value. Fair value gives a larger non-controlling interest and a larger goodwill. US GAAP (ASC 805) always uses fair value. The workbook shows both side by side.

**What if the price is less than the net assets?**

The sheet shows a gain on a bargain purchase. IFRS 3 requires you to reassess the identification and measurement of the assets, the liabilities and the consideration before you recognise the gain.

**Is the days method for a mid-year purchase accurate?**

It is an approximation. Where you have a trial balance at the acquisition date, use it: the profit before that date belongs to the net assets acquired, not to the group result.

**Does it cover tax or disposal costs?**

No. Deferred tax on fair value adjustments, acquisition costs and disposal costs are left out so the logic of each case stays clear.

**Are the figures real?**

No. They come from a fictional group and are marked as examples.