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Hi Sir Chris!
Just want to ask about a negative Goodwill. In working goodwill for Heeny, I got (66), a negative goodwill for Heeny.
For the group NCI I got 327.62 which is short by 67 from the answers. I was wondering if it has something to do with a negative goodwill? I’m quite confused with goodwill’s impairment test and allocation of impairment loss to CGU…
I hope you can make a video on this one. Just if you’ve got the time. Hope to hear from you soon.
Best regards,
KylerAnd Sir Chris just a follow up question. How would we know if we should use partial goodwill or full goodwill?
Sometimes on the exam it says full goodwill method is used. From my understanding if fair value NCI are given then full goodwill method should be used. And if NCI is at its “proportionate share of the fair value of sub’s asset…” Then partial goodwill should be used?
Thanks a lot!
The question will tell you which one to use.
You’re correct on your understanding of fair value method and proportionate share method too. Well done.
Thanks
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