The excess of fair value over book value in a Parent-Subsidiary is assigned to goodwill assuming identifiable assets and liabilities are equal.

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This is known as the acquisition method of accounting, where any excess of fair value over book value is assigned to goodwill, assuming that the identifiable assets and liabilities are equal. Goodwill represents the value of intangible assets such as brand reputation, customer relationships, and intellectual property that are not separately identifiable.

The Excess of Fair Value Over Book Value in a Parent-Subsidiary