Sir, when do we need to calculate notional goodwill?
I know if we have measured NCI at it’s proportionate share of subsidiary’s net assets and we simply have goodwill impairment, then Dr Parents Retained Earnings (and Cr Goodwill) with the full amount of impairment but when do we need to calculate Notional Goodwill??
I’m not sir (not for the purposes of open tuition anyway!) but I’ll have a go at answering.
We need to compare the subsidiary value with the recoverable amount to begin with, to determine if and how much impairment there is. So we have to gross up the NCI with their notional goodwill, for comparison purposes.
I have the same question but I couldn’t see the answer
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