Compute goodwill on consolidation: Alpha purchased all shares of 100 million pounds of Beta. The terms of sale agreement included exchange of 3 shares of alpha for 2 shares of beta. On 1apr 2012, Market value of alpha's shares were 20 pounds and beta was 27 pounds. the terms included payment of additional 2.42 pounds per share provided profits of of beta exceeds the targeted value which is probable by 85%. Beta had: Net assets of fair value 2400 million pounds. Intangibles not recognized in books: customer relationships of 200 million pounds, employee expertise of 80 million pounds, In process R&D of 10 million pounds which didn't meet IFRS conditions. Legal and professional fees were 2.4 million pounds, including cost of issue of shares which were 400000 pounds. Cost of director's time 200000 pounds. Estimated life of goodwill on acquisition. Annual discount rate 10%.