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Hello, I am trying to take FR exam in June 2023.I have two separate questions. I am confused about the negative goodwill treatment in both consolidated income statements and financial positions and how to recognize goodwill arising from proportionate method in NCI.
hoping to explain me and I am so grateful to see the explanation.Hi,
What specifically is it that you do it understand?
The negative goodwill (gain on bargain purchase) is recognised though profit or loss in the year of acquisition. It then forms part of the group retained earnings on the consolidated SFP.
The proportionate method looks at valuing the NCI based upon the NCI share of the fair value of net assets.
Thanks
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