Hello sir,
For the question 4 of the chapter 8 practice question (Sored and Raise) I was wondering why we didn’t share the goodwill and the goodwill impairment with the NCI since we valuate them at the fair value based on the market price of the share.
Then I checked and saw that the 954k of valuation of the NCI investment was actually less than the proportional value of the net assets at the date of acquisition (25% of 4 960k =1 240k).
Does it mean that we should check if the valuation of the NCI is greater than the proportionnal value in order to know if we share the goodwill with the NCI?
Or did I miss a detail?
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Chap 8 practice question 4 Impairment Goodwill NCI
9y ago#1The question asks for the valuation of goodwill. The sharing of that goodwill is irrelevant to the question ... all we are looking for is the goodwill figure
However ... I have to thank you for pointing this error out to me - I shall try to ensure that I tell Admin in good time to have the example tweaked in time for the December downloads
Thanks again
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