Under the Full Goodwill Method

question 48

Multiple Choice

Under the full goodwill method:

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

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Definitions:

Depreciation Expense

The allocated portion of the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Land Appraised

The assessed value of land determined by an appraiser, usually for the purposes of taxation, investment analysis, or sale.

Land Improvements

Enhancements made to land to increase its value or usability, such as landscaping, fencing, or adding infrastructure like roads and utilities.

Building Appraised

The assessed value of a building, determined by a professional appraiser based on factors such as location, condition, and market trends.