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Calculation of goodwill

This topic has 1 reply, 2 voices, and was last updated 6 years ago by P2-D2.

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April 2, 2018 at 3:17 pm #444532
Roz
Member
- Topics: 1
- Replies: 4
hi I can’t get my head round the goodwill calculation for part acquisition of subsidiaries.
The NCI is included as we need the full value of the investment vs FV, but then why don’t we only put down the parents share of goodwill on the SOFP?
Sorry if that’s a stupid question I just can’t understand it!
Thanks in advance.
April 3, 2018 at 7:06 pm #444813
P2-D2
Keymaster
- Topics: 4
- Replies: 7065
Hi,
The goodwill recognised on the SFP depends on how it is measured. If it is the proportionate share then we are showing the parent’s goodwill only. Then if it is the fair value method then we are showing the full goodwill.
Hope that helps.
Thanks
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