Question

IFRS allows an alternative method for valuing the acquired subsidiary's goodwill. When is U.S. GAAP and IFRS valuation the same regardless of which valuation method is used under IFRS?

Answer 1

Under U.S. GAAP and IFRS, the valuation of acquired subsidiary's goodwill is generally the same when using the 'full goodwill' method.

Step-by-step explanation:

Under U.S. GAAP and IFRS, the valuation of acquired subsidiary's goodwill is generally the same when using the 'full goodwill' method. This method values the goodwill as the difference between the total acquisition cost and the fair value of the net assets acquired. Both U.S. GAAP and IFRS require the same valuation approach when using the 'full goodwill' method.