Mathematics · Corporate Accounting Consolidation Formulas
In corporate accounting, under IFRS 3 / Revised standard practices, which formula accurately represents the baseline structural calculation of goodwill arising on the acquisition of a subsidiary?
- 1Fair value of consideration paid - Fair value of net identifiable assets at acquisition only
- 2Fair value of consideration paid - Fair value of non-controlling interest at acquisition date + Fair value of net identifiable assets at acquisition
- 3Fair value of consideration paid + Fair value of non-controlling interest at acquisition date - Fair value of net identifiable assets at acquisition✓
- 4Fair value of consideration paid + Fair value of non-controlling interest at acquisition date + Fair value of net identifiable assets at acquisition
Correct answer
Fair value of consideration paid + Fair value of non-controlling interest at acquisition date - Fair value of net identifiable assets at acquisition
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