FRgoodwill calculation

You will take 100% of the company's assets and liabilities to consolidate with the parent. However, you will only take your share (75%) of the company's profit and reserves.

In past paper Dec 2008, they take 60% of the net assets, and i cant understand why they sometimes take the parent share and sometimes dont.

Hi If fair value is known then its Cost of investment + Fair value less 100% of sub's equity If fair value is not known (or given) then its Cost of investment less the nci % of equity. Regards

Hi Thanks for helping me. when you say fair value, do you mean of the investment and not fair value of assets?

Hi If fair value of the non controlling interest is known then its Cost of investment + Fair value of the non controlling interest less 100% of sub’s equity If fair value of the non controlling interest is not known (or given) then its Cost of investment less the % of equity you are aquiring. I hope this is a little clearer and besides my last post was incorrect (so please ignore it) with regards to calulating goodwill "if the fair value of nci is not known" apologies for any confusion. Regards