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Chapter 19

(W3) Goodwill

$m
Fair value of consideration X
NCI at acquisition X
FV of sub’s identifiable net assets at acquisition (W2) (X)
––––
Goodwill at acquisition X
Impairment (X)
––––
Goodwill at reporting date X
––––

The non-controlling interest at acquisition can be measured at either:

 fair value

 its proportionate share of the fair value of the subsidiary’s net assets at the
acquisition date.

Negative goodwill (a gain on bargain purchase) is credited to the
statement of profit or loss.

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