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Why is it that we take the whole figure of calculated goodwill when consolidating instead of just taking the parent’s share only
Hi,
We have a choice of accounting policy to choose either method.
The issue when we show just P’s share using the partial method is that the SFP is meant to show all the assets/liabilities the P controls. By not showing all of the goodwill we are not following what we are then doing with the rest of the items in the group SFP. We therefore use the full goodwill method to address this issue, thus including the NCI share that we do not own, but do control
Thanks
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