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  1. avatar says

    Hi I have a question with regards to goodwill : according to the revised IFRS .will it be be correct to calculate goodwill for both CI and NCI and add the two (less impairment ) in the consolidated statement of financial position ? As goodwill under non – current asset?
    Or am only supposed to include the CI good will?

    • Profile photo of MikeLittle says

      Please post questions like this on the Ask the Tutor forum in future. Thanks :-)

      In CSofFP the goodwill value is shown as in working W2 according to MY method of setting out workings (BPP and Kaplan do their workings differently than I)

      So the goodwill as calculated in W2 is the figure that features and therefore includes any goodwill attributable to the nci

      Hope that helps

    • Profile photo of MikeLittle says

      Goodwill is not impaired at a certain percentage each year – that would be amortisation and we left that as a principle some time ago.

      Instead of amortising, directors are nowadays required to consider whether goodwill should be impaired this year and, if so, by how much

      So your question isn’t valid and I cannot answer it!

    • Profile photo of MikeLittle says

      It’s the value of the nci at date of acquisition. Sometimes the examiner will tell you the value. Sometimes he says it’s proportionate, sometimes he’ll tell you the value of the goodwill attributable to the nci and sometimes he’ll say that the subsidiary share value is a fair value for the purposes of calculating the nci value of their investment

      Ok?

      • Profile photo of albertabediacca says

        sorry for disturbing you big mike,but what do you do when its proportional? do you multiple the sum of the subsidiaries equity share and retained earnings by the holding companies acquired percentage?? Thanks so much

      • Profile photo of albertabediacca says

        Michael my problem seem to be with the example 5 in chapter 7.i can’t see how to get 23,000 for that calculation please help me out.thanks for the immediate reply

      • Profile photo of albertabediacca says

        Oooh big mike i just got it.i just had to add the 60,000 to the 32000 and multiple by the subsidiary’s percentage.so easy. sorry for bothering you.

        Thank you

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