Investment & Owners Equity Rule-set

Summary:

Hi,

We are looking to understand how goodwill is typically handled in real-world scenarios involving 100% owned subsidiaries.

For example, if a holding entity (H) owns 100% of a subsidiary (S), and Investment in Subsidiary is reported by H while the corresponding Equity is reported by S, would goodwill potentially be generated as part of the Investment/Equity elimination, or would goodwill generally be expected to remain zero for a wholly owned subsidiary?

It would also be helpful to understand the different scenarios in which goodwill may or may not arise for 100% owned entities, based on your experience with other client implementations.