Using the full goodwill method rather than the partial goodwill method does not change the amount recognised as an equity transaction when there is a post-control change in the parent's ownership interest.

Question

Quizplus · Accepted Answer

The full goodwill method and the partial goodwill method differ in how goodwill is calculated, which can affect the amount recognized in equity transactions related to changes in the parent's ownership interest post-control. The full goodwill method recognizes goodwill based on the entire fair value of the subsidiary, including the non-controlling interest's share, while the partial goodwill method only includes the parent's share of goodwill. This difference can lead to variations in the amount recognized as an equity transaction when there is a change in the parent's ownership interest.

Using the Full Goodwill Method Rather Than the Partial Goodwill