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Hello Everyone!
Normally when calculating goodwill to be presented in the financial position, what exactly is the fair value of NCI at acquisition if it is not given directly in the question?
There was one question where I saw the internally generated brand name of the subsidiary was taken as the fv of NCI at acquisition. Also, this is for the full goodwill method.
Please help as I am not able to understand the concept.
Hello,
Goodwill will be calculated in accordance to ifrs 3, thus if the fv of nci is not given, then it is not possible to calculate the gw, unless the question wants you to calculate partial goodwill. If it wants full gw, there must be some kind of indication to calcuate the fv of nci, for eg, they might give you the share price of the subs.
For the internally generated brand (ITA), ias 38 does not allow internally generated brands to be capitalzed unless they meet the stringent requirement under the std, but in a business combination ifrs 3 would over rule ias 38 and the brand will be included in the NET ASSETS ACQUIRED, (if its not identifiable and reliably measurable, then it would be subsumed into gw) . I am unsure why they used the brand value as the fv of nci, can you show which question this was.
I hope this helps.
Protonix wrote:Hello,
hello.
I have doubt in financial asset of debt instrument through OCI. Suppose at the initial period the FV of Debt instrument $5m and at the year ended the fair value is $5.5m. There is $0.5m should be booked in OCI and next year there is impairment loss $0.4m. So how impairment should be treat and the value of debt instrument is affected or not.
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