The difference between the investor's cost and the investor's percentage of the carrying value of the net identifiable assets of the associate is known as:

Question

Quizplus · Accepted Answer

The difference between the investor's cost and the investor's percentage of the carrying value of the net identifiable assets of the associate is known as the Acquisition Differential. Goodwill is the excess of the cost of an acquisition over the fair value of the identifiable assets and liabilities acquired. Fair Value Increment is not a recognized accounting term. Excess Book Value is not specific enough to describe the difference between the investor's cost and percentage of carrying value of net identifiable assets.

The Difference Between the Investor's Cost and the Investor's Percentage