Which of the following statements regarding the partial goodwill method is FALSE?
A)The NCI is measured at the NCI's proportionate share of the fair value of the acquiree's identifiable net assets.
B)The NCI does not get a share of any equity relating to goodwill.
C)Goodwill consists of the consideration transferred plus previously acquired investment by parent plus parent's share of the net fair value of the identifiable net assets of the subsidiary.
D)The only goodwill recognized is that acquired by the parent in the business combination.

Question

Quizplus · Accepted Answer

The partial goodwill method calculates goodwill as the excess of the consideration transferred over the parent's share of the net fair value of the identifiable net assets of the subsidiary. It does not include previously acquired investment by the parent.

Which of the Following Statements Regarding the Partial Goodwill Method