What are the two methods of determining goodwill under the IFRS acquisition method?

Under the International Financial Reporting Standards (IFRS), when determining goodwill in a business combination, the two recognized methods are the full goodwill method and the partial goodwill method.

The full goodwill method involves recognizing the entire goodwill associated with the acquired company, which includes the fair value of both the controlling interest and any non-controlling interest in the subsidiary. This method reflects the comprehensive value of the acquired business as a whole.

On the other hand, the partial goodwill method only accounts for the goodwill attributable to the acquirer's share of the subsidiary. In this case, the goodwill is calculated as the excess of the consideration transferred for the acquisition over the fair value of the identifiable net assets acquired, only considering the proportion of the acquired business that the acquirer owns.

Choosing the correct method depends on whether the acquirer recognizes non-controlling interests at fair value (full goodwill) or at their proportionate share of the acquired assets (partial goodwill). Understanding these methods is crucial for correctly reporting goodwill on the balance sheet following an acquisition, in compliance with IFRS guidelines.

The other options do not reflect the terminology or framework established under IFRS for recognizing goodwill, which is why they do not provide the accurate methods specified.