Full Goodwill Method

Definition

An approach to measuring goodwill in a business combination where goodwill is recognised for both the acquirer's share and the non-controlling interest's share, resulting in a higher total goodwill figure. Under ASC 805, the full goodwill method is mandatory for all business combinations. Under IFRS 3, it is an option available on a transaction-by-transaction basis as an alternative to the partial goodwill method. The full goodwill method requires the fair value of the non-controlling interest to be estimated, typically using market-based valuation techniques.