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full goodwill method

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › full goodwill method

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by AvatarStephen Widberg.
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  • May 23, 2021 at 4:38 pm #621549
    AvatarNoah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    “the full goodwill method increases reported net assets”

    sir i don’t understand the above sentence.

    Isnt it that goodwill and NCI both increase by NCI’s share of goodwill in case of full goodwill method, so that means assets and liabilities both increase by same amounts, so no change in net assets? If you concur with me then, perhaps the above sentence is wrong?

    May 24, 2021 at 11:12 am #621603
    AvatarStephen Widberg
    Keymaster
    • Topics: 17
    • Replies: 3452
    • ☆☆☆☆☆

    NCI is not a liability.

    Assets increase, liabilities do not change.

    So NA goes up..

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