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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Proportional Goodwill logic
Hello Mr Moffat,
Hope you are fine and thank you for your lectures.
I just have a question about the logic behind the proportional method (I am completely OK with the calculation).
When we calculate the goodwill based on proportional method, we know goodwill is all related to the parent.So does it mean that :
1 – the value of goodwill related to nci is ZERO.
OR
2 – The value of goodwill related to nci is NOT zero. we just IGNORE to calculate it.
Which logic correct?
Thank you very much.
The proportional method applied to joint ventures (which are not examinable in Paper FA) and was abolished 7 years ago!!
We deal with goodwill in the manner explained in my lectures 🙂