- This topic has 1 reply, 2 voices, and was last updated 4 years ago by P2-D2.
- You must be logged in to reply to this topic.
Instant Poll - Read and post comments:
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
hi I can’t get my head round the goodwill calculation for part acquisition of subsidiaries.
The NCI is included as we need the full value of the investment vs FV, but then why don’t we only put down the parents share of goodwill on the SOFP?
Sorry if that’s a stupid question I just can’t understand it!
Thanks in advance.
The goodwill recognised on the SFP depends on how it is measured. If it is the proportionate share then we are showing the parent’s goodwill only. Then if it is the fair value method then we are showing the full goodwill.
Hope that helps.