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Hi Sir,
Just wanted to ask what would be the differences in consolidation if proportionate method is used instead of the FV (full goodwill method) and vice versa. Please if you could me an overview of the difference in their accounting. Thanks.
Hi,
The proportionate method values the NCI at the proportionate share of net assets, resulting in the goodwill being shown as that of the parent only.
The full method values the NCI at the fair value of the NCI, resulting in the goodwill being the combination of both P’s share and the NCI’s share.
Thanks
So if Proportionate method we should gross up goodwill to find impairment then share between NCI and the group?
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