ayodayo

if bv = fv then there is no gw. MI = .4 * 150, so new equity = old equity + MI

Analyze_This

zoya Wrote:
-------------------------------------------------------
> look. once for all time. equity must be different
> depending on if full or partial goodwill is used.
> im not sure how goodwill is handled in prop
> consolidation, would the same rules for goodwill
> apply? does full goodwill apply? if so, i think
> you can have cases where under prop consolidation
> u'd end up with higher equity, too.
>
> please correct me if im wrong

Under prop consolidation, there will be no minority interest.

You will be getting your proportional share of the assets and liabilities.

Income from sub and equity from sub will be eliminated.

ap0258

and, in the above example, if you had an investment in the sub prior to consolidating you would have to subtract the old invesment from assets.

SFoyil

Due to minority interest, will ROE measure differ between full and partial goodwill? I have noticed on page 50 of FRA CFAI text there is an example where 'Shareholder's equity' and 'Equity' are separated by Minority Interest. Which figure would be used to calculate ROE?

YAhmed

Nevermind I see on page 47. Sorry :-D