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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Consolidated statement of FP
Sir i understand that when Goodwill is negative it is a bargain purchase and we add it to the consolidated retain earnings, but if NCI is on air value basis do we allocate some of the negative goodwill to NCI based on their share ? In example 3 of chapter 8 value of NCI was on propotional bases so when we got negative goodwill, we took it all to consolidated retained earnings but i was i was wondering what would happen if NCI is on Fair value basis and there is a negative goodwill.
Thanks in advance
“… but if NCI is on air value basis do we allocate some of the negative goodwill to NCI based on their share”
No! They have had nothing to do with arriving at this bargain purchase so it’s all ours!
OK?