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When there is partial disposal of controlling interest e.g from 80 to 60% while “Full Goodwill approach” is adopted how do you calculate “Goodwill Sold” for the purpose of finding adjustment to equity? 20% of the disposed interest has to be applied to the full goodwill(Including NCI) to calculate goodwill sold? or only to parents goodwill? In june 2010 exam the percentage was applied to full goodwill to calculate goodwill sold
Fair Value of Consideration Received
Less
% share of net assets disposed
% Goodwill Sold
=Adjustment to Equitythere is no example in opentuition notes with “Full Goodwill” approach on such disposal
Please let me know quickly
Thanks in AdvanceHi – I think there is! If I sell 1/4 of my investment, I’m selling 1 / 4 of the goodwill attributable to me to the nci. Specifically, in answer to your question, I’m not 100% certain, but I imagine that it’s eg 20/80 of our goodwill which should feature in the calculation.
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