- This topic has 3 replies, 2 voices, and was last updated 1 year ago by .
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
In Lecture of Chapter 23, Second example.
You calculated value of Subsidiary (P’s Investment + Non-Controlling interest) and then compared to entire Share Capital and all Retained earnings to find Goodwill.
My question is that why we can not do by just taking Investment by P only (excluding fair value of NCI) and comparing it with 60% of Retained earnings and 60% of Share Capital to find goodwill.
Because we want the total value placed on the goodwill of the subsidiary (just as we bring in the total value of all the assets in the subsidiary) – not just 60% of them.
Also, because this is the rule in the accounting standard and it not our choice 🙂
Thank you sir.
You are welcome 🙂