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In the June 2013 qn 1 solution the impairment of goodwill for Park is 80. The goodwill is to be calculated on proportionate basis. The total impairment is 247 of which 80 is allocated to goodwill. Should only parents share of 60 percent be allocated to retained earnings as the solution has allocated the full 80 to retained earnings
Please help ASAP
Regards
AnisaHi Anisa
You can take the full 80 to retained earnings but then 32 of that 80 should be recharged to the nci.
I don’t have a copy of the question handy so, if you’re not satisfied with that answer, let me know and I’ll try to get a copy of the question. (I live in a village with no telephone lines so internet connection is slow and unreliable)
Thanks Mike
Just one more question on this. Say for eg your total impairment calculation is 100 and of the 100, 80 is for goodwill. Therefore the entire 80 gets allocated to retained earnings.
The other 20 may relate to impairment of PPE (sometimes stated in the question). If you are calculating goodwill on the proportionate or full method, will this 20 still be split between parent and NCI? As these methods only apply to goodwill. Am I right?
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