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Hi
Am I correct in saying that if the nci is valued at proportion of assets method then if there is impairment , the impairment is not split between sub and parent the whole impairment is allocated to parent only, not sure why this is the case?
Hi,
Correct. If we have goodwill under the proprotionate share method then the impairment will relate to the group share only as there is no NCI goodwill. If it is the full method then the impairment needs to be split across the group and NCI as the goodwill represent both the NCI share and group share.
Thanks
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