Financial Statements

Kayleighz
Kayleighz Registered Posts: 3 New contributor 🐸
in General student discussion
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

Comments

  • Jo Clark
    Jo Clark Registered Posts: 2,470 Beyond epic contributor 🧙‍♂️
    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
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin

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