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Question involves two acquisitions, one by the parent adn one by the subsidiary, parent has control of both.
In reference to first acquisition , question states: “The non-controlling interest at acquisition was valued at its proportionate share of the fair value of the identifiable net assets of Marble”
In reference to 2nd acquisition question states: “The non-controlling interest in Granite at acquisition was measured as its fair value of £70m”
Am I right in thinking the first is partial goodwill method and the 2nd is full goodwill method?
I am struggling a bit with recognizing and accounting for Goodwill method- I know this is more of an F7 topic so I really should know this by now!
I am a bit confused becuase I assumed a Group would always use the same method? Or do I calculate goodwill differently as its subsidiary buying subsidiary?
“IFRS 3 allows an accounting policy choice, available on a transaction by transaction basis, to measure non-controlling interests (NCI) either at:
fair value (sometimes called the full goodwill method),
or the NCI’s proportionate share of net assets of the acquiree.”