Goodwill calculation in case of subsidiary

This is a very confused question from a very confused student - am I right? Have you watched the free videos and followed the examples in the free course notes? I think not! There should not be confusion to this extent if you had Confusion #1 is where you have written "... parent acquires % from the subsidiary shares ..." The shares in the subsidiary are NOT bought FROM the subsidiary Confusion #2 is where you have written "... we subtract from the payments (investment) ..." We very rarely have to subtract anything from 'investments' in order to arrive at the goodwill figure. Where have you got this idea from? Confusion #3 is in the two alternatives you have given me for this subtraction exercise that isn't now going to take place In the rare circumstance when it IS necessary, neither of the two alternatives you have given me is appropriate Let me suggest ... 1 you download and print the free course notes 2 you turn to the start of the consolidations chapters 3 you access the first of the consolidation videos, and 4 you re-start this topic with a clear mind If you then have confusion, post again!

Hello, May be my English language, is not so good, also, i started to study the FAR in CPA, and almost finished 80% , then i read the notes of F7 , may be there are some differences between them . any way , i d think that my question would be better if it was : what is the goodwill formula, at the acquisition case ? Thanks

Cost of acquisition for the parent plus Value of nci That total is then compared with the fair value of the subsidiary's net assets at the date of acquisition The difference is goodwill (or, rarely, negative goodwill)

Thanks a lot .

You're welcome