goodwill: equity method vs. consolidation
Can someone correct my understanding:
I buy x% of AF.
Under equity method i compare purchase price to the book value of AF. Any excess is distributed (how?) to identifiable assets and expensed or amortized and any remaining goes to goodwill.
under consolidation I compare purchase price to fair value of AF and any excess is goodwill? (not BV correct)
Study together. Pass together.
Join the world's largest online community of CFA, CAIA and FRM candidates.