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How do you calculate the fair value of NCI if you have only been given the goodwill attributed to the NCI? considering we are calculating NCI at fair value method!
Hi,
If you’re given the NCI goodwill then you just need to add on the NCI share of the net assets at the reporting date. NCI is essentially what the NCI own of the subsidiary, so if we know the amount of goodwill they own then we just need to add on the share of the net assets they own too.
This is more likely to be seen in F7 (I thin it appeared once a long time ago) and hasn’t been seen in any P2 exams.
Thanks
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