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Hi, Kindly let me know about how to find full goodwill when FV of NCI is not given in the question and the acquirer policy is to measure goodwill using Full Goodwill method.
I know there is option of proportionate method but in this situation how can we find using full goodwill method.
Regards
Faheem HassanHi,
If you are not specifically given the FV of NCI then you would have to be given the share price of the subsidiary to calculate the FV of the NCI. You would take the NCI% of the S shares in issue and multiply by S’s share price.
The other option is you might be given the NCI share of goodwill to which you can then calculate the parent’s share using the proportionate share method and add the two together to calculate the full goodwill.
Hope this helps.
Thanks
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