Under the full goodwill method:
A) the NCI does not get a share of any equity relating to goodwill.
B) only goodwill acquired by parent entity will be recognised.
C) the NCI is measured at the NCI's proportionate share of the acquiree's identifiable assets and liabilities.
D) acquired goodwill consists of both goodwill of the subsidiary and the premium paid by the parent to acquire control over the subsidiary.

Question

Quizplus · Accepted Answer

Under the full goodwill method, the acquired goodwill consists of both the goodwill of the subsidiary and the premium paid by the parent to acquire control over the subsidiary. This means that the NCI does get a share of any equity relating to goodwill, and the NCI is measured at the NCI's proportionate share of the acquiree's identifiable assets and liabilities. Therefore, options A, B, and C are not correct.

Under the Full Goodwill Method