Does anyone know why there is a difference in goodwill calculation between the equity method and the acquisition method?
Goodwill in an acquisition changes the minority interest if its full goodwill or partial goodwill.
Nothing special I know of for goodwill in equity.
There is no goodwill in the equity method.
The book says that the excess of purchase price over book value of equity (net of allocations to B/S items reported at BV) gets incorporated as goodwill in the equity method.
What I meant is that there’s not a separate Goodwill account.
There’s one line on the balance sheet – Investment in XYZ Company – and one line on the income statement – Income from XYZ Company.