In intercorp investments, anyone got a quick way to remember how goodwill/partial goodwill affects the B/S and I/S for each of the methods of accounting (Equity, Acquisition, and proportionate consolidation)??? thanks
Well, expect to be tested on this stuff in the exam, says schweser. heres what i can remember: Only full goodwill method allowed in US GAAP. Partial goodwill allowed in IFRS along with full goodwill method. Additionally under both IFRS & US Gaap, goodwill can’t be amortized, only tested for impairment. Full Goodwill = total fair value of target - fair value of all target’s identifiable net assets Partial Goodwill = Purchase price - acquirer’s share of fair value of all assets Goodwill = Excess purchase price - excess attributable to assets. guys anything i’ve missed? I am losing sleep.