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Sir I just wanted to check for calculating goodwill
We do1)Purchase cosideration
Add NCI ( X% of FVNA)Less FVNA
If fvna is given.2)Purchase consideration
Add NCI (x% of fvna or directly given in question)Less FVNA(if fvna not given)
Capital
Add RE
Add OCEI wanted to know if there is any other method as well and how we would know which method to use how it will be asked in the exam.
Thanks
Hi,
1. Partial goodwill method, means NCI do not have goodwill apportionment. Q will said is proportionate. When do impairment need to calculate notional goodwill
2. Full goodwill method, NCI got goodwill portion. Q will give FV of NCI. Easier for impairment as comparing like to like
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