How do you calculate goodwill? Your 30 second recap for IFRS 3

When an acquirer doesn’t own all the shares in an acquiree, the equity in the subsidiary not held by the acquiree is called the non-controlling interest (‘NCI’)

NCI resulting from a business combination is measured at:

  • The NCI’s proportionate share of the acquiree’s identifiable net assets (partial goodwill method), or
  • Fair value (full goodwill method)

Read more