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Please what goodwill method is favoured in the exams?
Is it the full method or proportion of NA.Thanks in advance
Most likely full, fair value method.
BEWARE! If the examiner uses the word “proportion” in a sentence together with “nci” there is an instant temptation to say automatically “Ah, nci is on a proportion of net assets basis and therefore there is no goodwill attributable to the nci”
Er, no! We cannot instantly reach that conclusion.
He has said recently that “goodwill is allocated on the proportion of shareholdings”
But full, fair value method is more likely than a simple proportionate basis
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