FAR — Quick Sheet
Business Combinations & Consolidations
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- Goodwill = Consideration paid + FV of NCI − FV of identifiable net assets acquired
- Negative result → bargain purchase gain, recognized in earnings (after re-checking measurements)
- NCI measured at fair value, shown within consolidated equity, separate from parent's equity
- Acquisition costs (legal, advisory) → expensed as incurred, not capitalized into goodwill
- Consolidation eliminates intercompany balances and unrealized intercompany profit