Under the single-date method,goodwill would be recognised.
A) at the point in time when the parent entity ultimately gains control of the subsidiary.
B) at the time when each additional acquisition of shares is made.
C) as part of equity in the parent's books.
D) at the point in time when the subsidiary shareholders acknowledge that they will sell their shareholdings to the parent entity.
E) None of the given answers.

Question

Quizplus · Accepted Answer

Under the single-date method, goodwill is recognized at the point in time when the parent entity ultimately gains control of the subsidiary. This is consistent with the accounting for business combinations under the acquisition method, which requires recognition of goodwill at the acquisition date.

Under the Single-Date Method,goodwill Would Be Recognised