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Methods to calculate Goodwill

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Methods to calculate Goodwill

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarP2-D2.
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  • Author
    Posts
  • September 23, 2018 at 5:09 am #475549
    Avatarsheetal
    Participant
    • Topics: 5
    • Replies: 4
    • ☆

    Good day Sir,

    I am going through video lectures and OT lecture notes about group consolidation but always getting confused with calculations method of goodwill.

    Sir can you please explain me or suggest where to read about it to get knowledge about it so that I don’t get confused.

    Thanks
    Sheetal

    September 23, 2018 at 9:36 pm #475604
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Hi,

    What is it that you’re getting confused with? You will have used the fair value/full method in FR/F7 so should be comfortable calculating it in this manner. The proportionate method just replaces the fair value with the percentage ownership of the fair value of the net assets.

    If you are really struggling then you will need to refer back to the study text of your chosen tuition provider.

    Thanks

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