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Which is an effective method for calculating goodwill? A) Full Goodwill Method B) Proportionate Goodwill Method

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Question ajoutée par Utilisateur supprimé
Date de publication: 2014/01/28
Zahid Chandio
par Zahid Chandio , Finance Controller , Americana

Well, if you want to follow International Accounting standards & IFRS. I'd suggest Full goodwill method.

Reason being when you calculate partial goodwill you only account for the goodwill of the Controlling party.

If you calculate fullgoodwill it shows complete picture, taking account of goodwill share of minority as well as of controlling party , which makes more sense.

 

MALIIK SOHAIL ABBAS
par MALIIK SOHAIL ABBAS , ACCOUNTS MANAGER , AL RAWDAH GREEN SWEET WATER

Proportionate good will method i suggested

Jawad Younas
par Jawad Younas , Office Administrator , Al-Raha Group of Technical Services

I'll go wtih partial goodwill method, make more sense for me.

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