What is not an effect of choosing the partial goodwill method over the full goodwill method:
A) there will be differences in the reported amounts at acquisition date in the consolidated statements.
B) the impairment test on goodwill after acquisition will be more complex under the partial goodwill method.
C) where the parent acquires some or all of NCI after obtaining control, there will be a higher impact on equity attributable to the parent shareholders.
D) many users or financial statements will so no value in the reported NCI.

Question

Quizplus · Accepted Answer

The option that is not an effect of choosing the partial goodwill method over the full goodwill method is choice D, as the reported NCI value will still be shown regardless of which method is used. Choices A, B, and C are all potential effects of choosing the partial goodwill method over the full goodwill method.

What Is Not an Effect of Choosing the Partial Goodwill