•       Result in carrying amount of goodwill only relate to parent’s element and NCI doesn’t reflect its share of goodwill

•       Impairment of goodwill only charge to parent

Goodwill calculation method as below:

Consideration transferred                                                         X

Less:         Share of net fair value of identifiable assets, liabilities and contingent liabilities        (X)

  X

Fair value option

•       Increase value of goodwill. This increase reflect NCI’s share of goodwill and “gross up” the goodwill. This option consistent with principle of consolidation

•       Impairment of goodwill charge to both parent and NCI

Goodwill calculation method as below:

Consideration transferred                                                         X

Fair value of NCI                                                             X

Less:         Share of net fair value of identifiable assets, liabilities and contingent liabilities        (X)

  X