Question 4

MFRS 3 Business Combination permits goodwill to be measured on a full goodwill' basis or partial goodwill method.

1. Explain goodwill with example.

[2 marks]

2. What is the difference between recognising full goodwill and partial goodwill?

[4 marks]

3. Negative goodwill is also known as bargain purchase. Explain the accounting treatment for bargain purchase in accordance to MFRS 3, Business Combination.

[2 marks