USA Question on Consolidated Goodwill

[david1]

Hi how is everyone doing? I understand that the formula for consolidated goodwill is consideration paid by parent add non-controlling interest less fair valve of subsidiary's net identifiable assets, but is there some reason that the subsidiary's net identifiable asset would include asset(s) contributed by parent? Thanks y'all.

 

[DrStrangeLove]

I don't think that would affect goodwill. If the parent's investment in the subsidiary is calculated under the equity method, then the parent's investment in the basic consolidation entry should handle the book value portion of contributed assets. And the identifiable excess entry should have any excess of those assets' fair value over book value. Since both of those parts are coming out of the total consideration paid anyway to calculate goodwill, I don't think there's another adjustment that needs to be made. Somebody please correct me if I'm wrong.