YouCanDoIt

nvestn wrote:
ff8789 wrote:
SpyAli wrote:
EQUITY METHOD:
Full Goodwill – Fair Value - BOOK Value of Net Identifiable assets (same under IFRS and US GAAP)
Equity reminds me of Book Value


ACQUISITION METHOD:
Full Goodwill – Fair value - Fair Value of Net Identifiable assets (same under IFRS and US GAAP)
Partial Goodwill – Purchase Price - Parents Proportionate share of Net Identifiable Assets (only under IFRS)
So its FF under Full goodwill and PPPP under Partial goodwill
[snip]
this is really helpful. thanks!
I honestly think that is wrong for the equity method part… IT IS NOT BOOK VALUE!!
Goodwill is goodwill, regardless of which way you report it. Goodwill is purchase price in excess of fair value of net identifiable assets. No questions.
Equity method you take purchase price less acquiror’s share of BOOK VALUE of EQUITY less amount of excess (i.e. fair value - book) attributed to tangible assets.  Purchase - Fair value is not entirely accurate.  That just determines excess for the tangible assets.  Plus if any intangibles you would need to account for that.  The rest of purchase price allocated to book value of equity.
The 2011 Mock Q44 AM makes this crystal clear.  If that is wrong and there is documented proof please share so we can all be confident in the answer since this topic will for sure be tested.