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Ask the Tutor ACCA FR

Consolidation mcq

MMax7y ago
Which of the following statements relating to goodwill is correct a) On investment in associate any related goodwill should be separately identified in consolidated financial statements b) If the fair value of subsidiary's contingent liabilities can be reliably measured at date of acquistion they should be included in consolidated net assets and will increase goodwill Sir why a) cannot be the correct answer?
P2-D2P2-D2Tutor7y ago#1
There is no goodwill to be recognised when we equity account for an associate. Thanks
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