Financial Statements

Kayleighz

Hi,

I have finally passed Financial Performance 4th time lucky!!!

Now just need to conquer Financial Statements. Having trouble remembering how to calcualate goodwill and going back over my notes isn't helping. Can someone help please

Thanks

Kayleigh x

Jo Clark

Hello Kayleighz

To calculate goodwill you need to take the cost of the investment and deduct the net assets at acquisition.

If there is a non-controlling interest (NCI) the calculation does differ slightly whereby you need to add the NCI then deduct the fair value of net assets acquired.

Does this help?


JC