Negative Goodwill of NCI

[mrafaykhan]

Dear Sir,

Hope you all are fine and doing fine in your lives. I have query regarding revised IFRS-3 that if we are using full goodwill method and while calculating good will we found following cases
1- Negative Parent goodwill and negative NCI part of goodwill.
2- Negative Parent goodwill and Positive NCI part of goodwill.
3- Positive Parent goodwill and negative NCI part of goodwill.

Now in above cases I am facing the following issues

1- Negative goodwill of parent will add in consolidated reserves as we did as per previous version of IFRS-3 and after that the SOFP will tie now what we will do with NCI negative goodwill part.

2- In this situation the parent's Negative goodwill will add in group reserves and the goodwill of NCI will appear at face of SOFP on assets side and the same amount will add in NCI, and so the SOFP will tie. Am I correct here?

3- In this situation the Parent Positive goodwill will apprear at SOFP but here I am facing the same problem as in Case 1 that where we take the negative goodwill of NCI.

Conclusively you can say I am facing problem in the treatment of negative goodwill of NCI. Kindly also tell me whether netting off of parent's and NCI goodwill is allowed or not.

Kind Regards,

Muhammad Rafay