Which of the following 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) It is more costly to measure the NCI 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) The impairment test on goodwill after acquisition will be more complex under the partial goodwill method.

Question

Quizplus · Accepted Answer

Choosing the partial goodwill method over the full goodwill method may result in higher reported amounts at acquisition date, a higher impact on equity attributable to the parent shareholders if NCI is acquired after obtaining control, and a more complex impairment test on goodwill after acquisition. However, it is not more costly to measure the NCI under the partial goodwill method. In fact, it is often less costly because only the portion of goodwill attributable to the parent is measured, rather than the entire amount.

Which of the Following Is Not an Effect of Choosing