Under the Full Goodwill Method

question 34

Multiple Choice

Under the full goodwill method:

• A) acquired goodwill consists of both goodwill of the subsidiary and the premium paid by the parent to acquire control over the subsidiary.
• B) the NCI is measured at the NCI's proportionate share of the acquiree's identifiable assets and liabilities.
• C) the NCI does not get a share of any equity relating to goodwill.
• D) only goodwill acquired by parent entity will be recognised.

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Definitions:

Commitment

Partners’ investment of time, effort, and resources in their relationship, with the expectation that it will continue indefinitely.

Mutuality

The quality or condition of mutual transactions, exchanges, or feelings, implying a reciprocal relationship characterized by mutual respect or concern.

Anxious-Ambivalent Attachment

A type of insecure attachment characterized by intense emotional reliance on a caregiver, mixed with feelings of anxiety and doubt about their support.

Zick Rubin

A social psychologist known for his research on love and romantic relationships, including the development of the Rubin Love Scale for measuring attachment.