Under the Partial Goodwill Method

question 41

Multiple Choice

Under the partial goodwill method:

• A) the NCI is measured at fair value of the shares they own.
• B) only goodwill acquired by NCI will be recognised.
• C) the NCI is measured at the NCI's proportionate share of the fair value of acquiree's identifiable assets and liabilities.
• D) the goodwill will be recognised in the business combination valuation entries.

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Definitions:

Depreciation Schedule

A table detailing the periodic depreciation expense of an asset over its useful life.

Worksheet

A document that accountants use for planning and preparing adjustments, showing the results of those adjustments before preparing financial statements.

Worksheet

A document used by accountants to gather information for adjusting entries and to prepare financial statements.

Asset Expires

Refers to the expiration or depletion of the useful life or service period of an asset, at which point it may no longer be productive or useful for the business.