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Good Morning Sir!
we have learnt the proportionate method and the full goodwill method.
However, in question Kutchen (J15) it uses the term ‘partial goodwill method’.
can u please explain what this is?
regards
It’s another name for the calculation of goodwill where the nci is valued as their proportionate share of the subsidiary’s fair valued net assets
It’s “partial” because only the goodwill that is attributable to the acquirer is recognised … the part that is attributable to the nci is not recognised ie the nci is valued as their proportionate share of the subsidiary’s fair valued net assets
OK?
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