Dear sir, in the formula of calculation of disposal of subsidiary, if partial goodwill method is applied, we must multiply net asset with share of investment in subsidiary,ei 80%.if full goodwill method is applied, 100%net asset will be used.Is that right?If not, please help me to connect it.Thank you.
Ask the Tutor ACCA SBR
Disposal of subsidiary-goodwill method
3y ago#1I recommend:
1. Proceeds minus
2. 100% net assets minus
3. Carrying amount of goodwill
4. Plus
5 Carrying amount of NCI.
It will always work irrespective of the type of goodwill.
:)
Dear Sir,
In the answer of Q1b Mock exam 2 (BPP Kit) - Kutchen Co:
Gain on sale of Niche Co equal:
1. Proceeds minus
2. 80% net assets minus
3. Carrying amount of goodwill
It does not take into account of NCI.
Can I understand that NCI has been hide in above formula. It should be :
1. Proceeds minus
2. 100% net assets minus
3. Carrying amount of goodwill
4. Plus
5 20%Carrying amount of NCI.
If your formula always works irrespective of the type of goodwill, what is the relevant of information of "partial goodwill" stated in the question? If full goodwill is applied, it only affects to the calculation of goodwill?
Thank you so much !
3y ago#3The calculation in Kutchen is pre-IFRS 3, but you will get the same answer.
As you say full v partial principally affects the initial calculation of goodwill.
Sign into reply to this topic.