In Bpp Activity 2 on basic groups, under the NCI calculation, NCI share of impairment losses on the proportionate share method, why does the impairment loss is 0, why doesnt we impair the NCI by 24*40%, just like in fair value method where the NCI share of impairment loss is 40*40%
In the BPP answer the 2 goodwill figures are 400 and 240 and the impairments are 40 and 24 (both 10% as stated in the question). In part 1 the loss must be shared with the NCI because we are valuing NCI at fair value. In part 2, no goodwill is attributable to the NCI , so no loss will be chaged. (If in doubt, look back at our groups lectures).