A widely used method of accounting for business combinations involving a partially owned subsidiary values goodwill at the amount acquired by the parent company.

Question

Quizplus · Accepted Answer

In accounting for business combinations involving a partially owned subsidiary, goodwill is typically measured as the excess of the consideration transferred by the parent company, plus the amount of non-controlling interest in the acquiree, over the net identifiable assets acquired. Thus, goodwill is indeed valued based on the portion acquired by the parent company, reflecting the parent's perspective.

A Widely Used Method of Accounting for Business Combinations Involving