- This topic has 1 reply, 2 voices, and was last updated 4 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for December 2024 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Basics of group accounting- Goodwill calculation using proportionate method
My question is that while calculating goodwill using the proportionate method, we only get goodwill attributable to the parent company even though we add the nci% of net assets of subsidiary at acquisition. Why do we get only goodwill attributable to the parent even though there is an element of NCI in the calculation?
P pays 100 for 60% of S. S has net assets of 80.
Calculate goodwill using IFRS 3 formula
COST 100
NCI 40% x 80 = 32
NA 80
ANSWER 52
Now, alternative calculation which is a bit more logical:
COST 100
Less 60% of NA = 60% x 80 = 48
ANSWER 52
But use IFRS 3 method in exam