December 2010 question 1 Premier

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    According to the question Note v. Consolidated goodwill is amortised over a five-year life. Goodwill has not been impaired as at 30 September 2010.Your anwers in the revision lecture doesnt include any amortisation of gwill but the published anwer has. So I am a bit confused whether to include amortisation or not.

    And also In the published answer, Net assets at date of acquisition is 7,000 but to calculate gwill it has taken Group share (7,000 x 80%) = (5,600 ) I did not understand why 5600 is taken instead of 7000.
    Your help would be much appreciated!!

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    I have a feeling that 2010 was before the revision to IFRS.

    We do not now amortise goodwill. Instead we subject it to an annual impairment review and straight line amortisation is therefore a thing of the past.

    The same applies to the calculation of goodwill. Nowadays we include a value for the nci. It’s possible that this question ( and I do not have it in front of me ) says that goodwill attributable to the nci is $xxx. In that case, some texts calculate the goodwill attributable to the parent’s holding and then simply add the goodwill attributable to the nci on to the goodwill of the parent


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