Introduction to Goodwill in Business Operations
The article addresses the complex accounting framework of goodwill in business concentration operations, exploring technical aspects of its measurement and recognition.
Acquisition and Ownership Percentage
The described situation involves a company that:
- Acquired 90% of another entity
- Used 10% through another participation
- Represents an interest percentage of 99.9%
Accounting Procedures According to NCRF 14
According to paragraph 50 of NCRF 14, in business activity concentrations, the acquirer must:
- Identify and measure acquired assets and liabilities
- Recognize all assumed assets and liabilities
- Identify and recognize any additional assets or liabilities
Accounting Review Objective
The main objective is to ensure that measurements adequately reflect the condition of all available elements at the acquisition date.
The MEP (Equity Method) allocation is 99.9% for calculating results and other variations.