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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Consolidation mcq
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?
There is no goodwill to be recognised when we equity account for an associate.
Thanks
