Group SFP – Goodwill – ACCA Financial Reporting (FR)
Reader Interactions
Comments
Leave a Reply
You must be logged in to post a comment.
Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
ACCA December Exams
20% off ACCA & CIMA Books
OpenTuition recommends the new interactive BPP books for March 2025 exams.
Get your discount code >>
Why the goodwill amount is different between the 2 method?
It is different due to the way they are calculated. There are two methods for the calculation. The method of fair value favors market data whereas the second method uses a percentage of the net assets to calculate the NCI of the entity. Both methods are equally acceptable when calculating the amounts.
However the method used would be probably disclosed in the financial statements as to inform the users to the way that the goodwill was calculated.
Isn’t the partial goodwill method calculated as the difference between the purchase consideration paid by the parent and the parent’s share of the fair value of the net identifiable assets?
P’s goodwill = 28,500 (38,000 x 75%)
NCI’s goodwill = 9,500 (38,000 x 25%)
Why not just do this?
15 minutes into the lecture, why don’t you just do:
P’s goodwill = 28,500 (38,000 x 75%)
NCI’s goodwill = 9,500 (38,000 x 25%)