So goodwill under US GAAP I know if full fair value of sub minus full marked up book value, yes? Under IFRS however, it is the actual $5million price paid - 30% ownership of the marked up book value of the sub…
But under the equity method, both IFRS and US GAAP require us to use the partial method?
Can someone please clarify…thnx!
Are you talking about the equity method or consolidation? Under consolidation, GAAP only permits the full-goodwill method, but IFRS allows either full or partial goodwill method for consolidating.
Equity method doesn’t recognize goodwill separately on the parent’s balance sheet, it’s baked into the one-line item account that appears when you do the equity method (i.e., investment in associate).