december 2011 past question paper

Without me looking up the question and answer, let me see if I can guess. Is the nci valued on a proportionate basis? In which case, no goodwill is attributable to them But if goodwill WERE attributable to them, how much would it be I'm guessing that it's 20% where the parent's goodwill is 80% So notional goodwill for the nci is one quarter of the parent's share of goodwill (20%/80%) There is an article about this by the examiner some 2 years ago (from memory) but I fail to appreciate properly the points that the examiner is making. For example he has the cost of a 60% acquisition by the parent as say $300,000 and the value of the remaining 40% held by nci as say $350,000 This scenario is irreconcilable in my mind - that a 40% holding should be valued at greater than the cost of 60%! For that reason I have pretty much discounted the scenario as improbable. Fortunately the situation rarely appears in the exam given that most (if not all) ncis are valued on a fair value basis Does that answer it or am I barking up the wrong tree?