Under the full goodwill method, a control premium is recognised when:
A) the parent paid more than the fair value for the shares they acquired.
B) the parent paid less than the fair value for the shares they acquired.
C) the consideration transferred by the parent is more than the fair value of the identifiable net assets acquired.
D) the consideration transferred by the parent is less than the fair value of the identifiable net assets acquired.

Question

Quizplus · Accepted Answer

The Answer of Under the full goodwill method, a control premium is recognised when:
A) the parent paid more than the fair value for the shares they acquired.
B) the parent paid less than the fair value for the shares they acquired.
C) the consideration transferred by the parent is more than the fair value of the identifiable net assets acquired.
D) the consideration transferred by the parent is less than the fair value of the identifiable net assets acquired.

Under the Full Goodwill Method, a Control Premium Is Recognised