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Chapter 12

(W3) Goodwill

Cost of investment x
NCI at acquisition x Check whether FV method
less or proportionate method
FV of Subs net assets at acquisition (x)

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GW at acquisition x
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W5 if proportionate.
Impairment (x) W4 and W5 if FV method.
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GW at reporting date x CSOFP
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Negative goodwill is credited to P/L as a discount on purchase.

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