The step-by-step method can be used only if the parent did not have an ownership interest of less than 20%.

Question

Quizplus · Accepted Answer

The step-by-step method is used for calculating goodwill in a business combination when a parent increases its ownership interest in a subsidiary over time. It can be applied regardless of the parent's initial ownership percentage, not just when the ownership interest was less than 20%.

The Step-By-Step Method Can Be Used Only If the Parent