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So my classmate went for the exam the other day and she said that they’ve given the shares and retained earnings and asked you to calculate goodwill and NCI but the twist here is there was no FV of NCI @ acquisition give . So is there a reverse calculation in which you can achieve the NCI @ acquisition?
In future you must ask in the Ask the Tutor Forum if you want me to answer – this forum is for students to help each other.
If you are not given the fair value of the NCI, then you value it based on the cost of the parent company’s shareholding..
So, for example, if the parent company paid $50,000 for 80% of the shares. Then you would take the fair value of the NIC’s 20% as being 20/80 x $50,000 = $12,500.
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