NCI in goodwill calculation

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May 12, 2018 at 8:07 am #451445
sss111
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What is the logic behind adding NCI to cost of investment when calculating goodwill ?

Thank you in advance !
May 13, 2018 at 9:14 am #451611
P2-D2
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Hi,

We’re trying to look at the entire value of the subsidiary, so if we were to just include our investment we wouldn’t be valuing it in its entirety. We therefore add the NCI to give the total value of the subsidiary.

Thanks
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