A Acquires a Controlling Interest of Less Than 100% Ownership

question 20

Essay

A acquires a controlling interest of less than 100% ownership in B,who in turn acquires a controlling interest of less than 100% ownership in C,on the same day.The acquisition by B of C results in the recognition of goodwill on acquisition.Explain why there is a need to adjust for the impairment of goodwill when calculating the non-controlling interest for

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Definitions:

Endorphins

Neurotransmitters produced in the brain that act as natural painkillers and are also involved in feelings of pleasure or euphoria.

Opiates

A group of drugs derived from opium used for their analgesic, sedative, and narcotic effects.

Mimic

Imitation of someone or something, often to entertain or to learn.

Depressants

Drugs that slow activity in the central nervous system.