Amortization of Goodwill after method change

Hi all,

Need some help.

It is not really clear to me how does BCS take into account (equity-method)goodwill, and further more - amortization of goodwill, in/after Method Change activity.

Business scenario

Step 1.

Company "A" (equity - 1000 monetary units) is consolidated using equity method (25%) since Q4/2005 (parent company invested 4000 monetary units).

Step 2.

At the end of Q4/2006 method change takes place, equity to purchase (25% --> 51%).

Step 3.

At the end Q4/2007 parent company increases its ownership in company "A" (51% --> 60%).

Customizing

- COI method "METH1" utilizes equity method as an accounting technique. Acquisitions - group shares. Extraordinary amortization of goodwill

- COI method "METH2" utilizes purchase method as an accounting technique. Acquisitions - group shares. Ordinary amortization of goodwill, starting next Q, during 20 years.

Expected behavior

Step 1.

Equity-method goodwill arises (3750 monetary units).

Step 2.

"New" goodwill arises (3910 monetary units) from 26% (25% --> 51%).

Method changes from "METH1" to "METH2".

Next Q (Q1/2007) goodwill (3750 + 3910) is amortized - 95,75 (over 20 years, per Q).

Step 3.

"New" goodwill arises from 9% (51% --> 60%) and amortized next Q.

"Previous" is amortized.

Reality bites...

Step 1.

Equity-method goodwill arises (3750 monetary units).

Step 2.

"New" goodwill arises (3910 monetary units) from 26% (25% --> 51%).

Method changes from "METH1" to "METH2".

Next Q (Q1/2007) goodwill remains the same - goowdwill is not amortized.

Step 3.

"New" goodwill arises from 9% (51% --> 60%).

Only the newly arised goodwill (9%) is amortized next Q.

"Previous" is still not amortized.

Is it "standard" behavior?

What causes the difference in Steps 2 and 3?

Thanks in advance.