benbenxiong

Hmmm yeah I see that as well...can anyone clarify?


lzen5 Wrote:
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> page 155 book2.
>
> it says NCI under full goodwill is the percentage
> of minority interest x fair value. in your
> example, shouldnt that be 20%x 100. NCI= 20????
>
>
> passme Wrote:
> --------------------------------------------------
> -----
> NCI is found under Aquisition method.
> in most Aquisition, Parent company only purchases
> a certain % of the Sister company.
> lets say A buys B for 80% of B's fair value of net
> asset.
>
> the 20% is NCI and has to be added to A's Equity
> in consolidated balance sheet.
>
> NCI differers under full and partial good will
> methods.
> lets say: A buys B for $100, and B's net asset is
> 50.
> full goodwill method: 100/0.80=125, 25 is NCI
> partial goodwill method: 50X(1-0.80)=10 is NCI