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

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October 7, 2018 at 12:41 am #476657
gangsta1
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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
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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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