Tag: Ind AS 7 statement of cash flows

09/02/2024 0

Non-controlling Interest and Goodwill or Bargain Purchase Calculations as per Ind AS 103

By indiafreenotes

Ind AS 103 outlines the procedures for calculating non-controlling interest and goodwill, or recognizing a bargain purchase in business combinations. It requires that non-controlling interest be valued either at fair value or at the proportionate share of the acquiree’s identifiable net assets at the acquisition date. Goodwill represents the excess of the consideration transferred over the net recognized amount of identifiable assets acquired and liabilities assumed. If this calculation results in a negative amount, it is assessed as a bargain purchase, which requires careful analysis and disclosure under Ind AS 103 standards.