hi all, so i understand Under the full goodwill method (mandatory under US GAAP and optional under IFRS), goodwill on the consolidated balance sheet would be the difference between the total fair value of the subsidiary and the fair value of the subsidiary’s identifiable net assets. Under the partial goodwill method (IFRS only), goodwill on the parent’s consolidated balance sheet would be the difference between the purchase price and the parent’s proportionate share of the subsidiary’s identifiable assets.
I thought that is just a way for calculation, but why shareholder’s equity is higher under full goodwill? what did I miss? and if partital or full good will creates difference in share holder’s equity, where does this difference get balanced out on balance sheet?