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Under Ind AS 103, goodwill at acquisition is measured as the EXCESS of (a) over (b), where (a) is:
AThe aggregate of consideration transferred at acquisition-date fair value + non-controlling interest + (in a step acquisition) acquisition-date fair value of any previously held equity interest
BThe book value of net assets of the acquiree
CThe fair value of net identifiable assets acquired
DOnly the cash consideration transferred
Answer & Solution
Correct answer: A. The aggregate of consideration transferred at acquisition-date fair value + non-controlling interest + (in a step acquisition) acquisition-date fair value of any previously held equity interest
Ind AS 103 paragraph 32: Goodwill = (consideration FV + NCI + FV of previously held interest) − net identifiable assets acquired and liabilities assumed.
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