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Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › Basics of group accounting- Goodwill calculation using proportionate method
My question is that while calculating goodwill using the proportionate method, we only get goodwill belonging to parent company even though we have added NCI% of net assets of subsidiary at acquisition? There is an element of NCI in this calculation as well isn’t it?
The proportionate method only takes into account the parent’s share of Goodwill. This is different from how other assets and liabilities of the group are fully consolidated with nci share of this being recorded. The following link might be of help to you-
https://www.accaglobal.com/sg/en/student/exam-support-resources/fundamentals-exams-study-resources/f7/technical-articles/impairment-goodwill.html