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I am very confused between the Partial and Full goodwill method. Can someone please help me in understanding the logic behind these two methods so that I don’t have to learn the formula by rote.
These are the few things that I don’t understand-
1. Why do we take fair value of the sub while calculating Non Controlling Interest (NCI) under full goodwill?
2. Why do we take fair value of net assets of the sub while calculating Non Controlling Interest (NCI) under partial goodwill?
3. And whats the difference between fair value of sub and fair value of net assets of sub?
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