Under the partial goodwill method:
A) the NCI is measured at fair value of the shares they own.
B) only goodwill acquired by NCI will be recognised.
C) the NCI is measured at the NCI's proportionate share of the fair value of acquiree's identifiable assets and liabilities.
D) the goodwill will be recognised in the business combination valuation entries.

Question

Quizplus · Accepted Answer

Under the partial goodwill method, the NCI is measured at the NCI's proportionate share of the fair value of acquiree's identifiable assets and liabilities. This means that the NCI will only receive recognition for their share of the net assets acquired, and will not be measured at fair value or based on any goodwill acquired by the NCI. The goodwill will still be recognised in the business combination valuation entries, but it will not affect the measurement of the NCI.

Under the Partial Goodwill Method