why goodwill appears in the consolidation financial statements but not the individual financial statements?

Question

individual statements refer to the parent or subsidiary

Answer 1

In the individual statements of the parent or subsidiary, the investment of one in the other is reflected as investment in subsid. and share capital respectively.

In preparing consolidated financial statements, an entity combines the financial statements of the parent and its subsidiaries line by line by adding together like items of assets, liabilities, equity, income and expenses. In order that the consolidated financial statements present financial information about the group as that of a single economic entity, the carrying amount of the parent’s investment in each subsidiary and the parent’s portion of equity of each subsidiary are eliminated. This is when the goodwill, if any, will arise. Goodwill is the excess of the cost of the acquisition over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the acquiree. It's only when you are preparing the consolidation worksheet and putting through your elimination entries that the goodwill will arise. Until you reach this stage, you won't see any goodwill anywhere.

Answer 2

Goodwill Arising On Consolidation

Answer 3

Goodwill hasn't got a true economic value. It is a bookkeeping entry when a company is purchases showing the difference between the book value and sales price. It wouldn't be related to a particular parent or subsidiary.
It is a strange creature because a company might have paid the extra based on reputation then the new management ruin the companies reputation the first few weeks. Banks won't loan on it and shareholders don't care about it. It just lays there until the business is sold again or goes belly up.