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Ind AS-103
Financial Reporting
If we follow Fair value method for determining the Goodwill, then the FV of NC will include Goodwill as well but if we deduct that amount from net assets(which doesn't include Goodwill)to determine Goodwill, Goodwill calculated will be wrong know sir?
Answers (3)
CA Suraj Lakhotia Admin
We deduct Net Assets from FV. So it is FV of NCI + FV of what we paid - FV of Net Assets. So FV of NCI includes goodwill. Also our FV includes goodwill.
In the net assets goodwill is not included, but we are deducting the FV of NCI which includes goodwill as well, so it will be wrong calculation know sir, if net assets includes goodwill then it would be correct I think!
Thread Starter
SravaN KumaRIn the net assets goodwill is not included, but we are deducting the FV of NCI which includes goodwill as well, so it will be wrong calculation know sir, if net assets includes goodwill then it would be correct I think!
We are not deducting FV of NCI We are deducting FV of Net assets.
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