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my question is that in the given example goodwill is calculated at proportionate method, is that the reason to record gain or loss in OCI?
what will be the case if fair value of goodwill is there. we allocate part of loss to NCI and rest to OCI.
when we are saying that balancing figure of post acquisition reserves already account for gain or loss on translation then why we need for the working on page 36 of OT notes
1. Your understanding about goodwill XD is perfectly correct.
2. The ‘balancing figure’ takes account of XD on NA and profits but not goodwill.so if we simply add good will XD to balancing figure we dont need to do that working of page 36.
because what confuses me is we are recording exchange loss on goodwill in working 4 of example 3 which is group retained earnings which ultimately included the balance of OCI. am i missing on something?
please clarify when do we need to do working on page 36?
If you are asked about FX, they will ask for 2 things:
1. Calculation of goodwill as in solution to Example 3.
2. Proof of XD for OCI – as in working on page 36.
That’s it -as you know they don’t test full consolidations any more.
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