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Valuation of NCI in a Business Combination and computation of Goodwill.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Valuation of NCI in a Business Combination and computation of Goodwill.

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by P2-D2.
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  • October 7, 2018 at 12:41 am #476657
    gangsta1
    • Topics: 75
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    Sir, where NCI was valued using the “fair value option”, this resulted in both the NCI & Goodwill increasing by the same amount when compared with the proportionate method. Can you please explain why this is the case sir and what those it signifies.

    October 7, 2018 at 10:31 am #476707
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6227
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    Hi,

    It signifies that the goodwill calculated includes the parent share of goodwill and also the NCI share too, whereas under the proportionate share method the goodwill is that of the parent only.

    Thanks

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