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

Question

Quizplus · Accepted Answer

Under the partial goodwill method, the NCI is measured at the NCI's proportionate share of the fair value of the acquiree's identifiable assets and liabilities. The goodwill will also be recognised in the business combination valuation entries. Therefore, choices A and B are incorrect.

Under the Partial Goodwill Method