[yohmie]

Hi Mike,

My question is on the allocation of exchange difference on goodwill among owners (parent company and NCI) when dealing with a foreign subsidiary at consolidation.

My understanding is that exchange difference on goodwill is to be apportioned between owners using percentage share of each owner if NCI is measured at fair value but I saw a solution that treated it differently.

The exchange difference on goodwill was apportioned between NCI and parent company using their individual goodwill. For instance, NCI share of exchange difference on goodwill was calculated as follows: NCI goodwill (NCI at date of acquisition less NCI portion of subsidiary fair value at date of acquisition) divided by total goodwill multiplied by exchange difference on goodwill. The parent company share of exchange difference on goodwill was calculated as total exchange difference of goodwill less NCI share of exchange difference on goodwill.

Is my understanding accurate or the solution I saw more accurate?

Thanks for your time.

[Author]

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