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I have a question regarding the allocation of goodwill impairment between Wear (parent) and Seat (NCI). Page no. 220
The question specifies very clear that NCI is valued on a proportionate basis, but in the answer to this question (page 235, Working 3) the goodwill impairment is allocated 60% to consolidated retained earnings and 40% of goodwill impairment is allocated to NCI. Why is that? Should not have been entirely to retained earnings and 0% to NCI? Did I got it wrong.
Thanks in advance for support,
AdrianOh WOW!!! If you are correct – I haven’t got F7 course notes handy – I’m in a hotel and away from home – then that is one silly mistake that I have made.
You are correct that, if a question tells us that the nci is valued on a proportionate basis, then there is no goodwill attributable to them and therefore there is no impairment of goodwill attributable to them either.
I shall certainly look at this again in the notes, but thank you for pointing it out
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