Basic group structures – Associate impairment – ACCA (SBR) lectures

Comments

1. anguschan0208 says

   September 19, 2018 at 4:06 am

   Dear Sir,

   Why we don’t need to calculate the P’s % of subsidiary when doing impairment on sub?

   Thanks

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   • P2-D2 says

     January 4, 2019 at 9:25 am

     Hi,

     We control the subsidiary and have consolidated it in full, therefore the carrying value is the entire value of the subsidiary and so we don’t need to take P’s%.

     Thanks

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2. Joy says

   July 27, 2018 at 3:59 pm

   Please, how do account for the impairment in associates? Will it be to DR- GOODWILL & CR- RETAINED EARNINGS. since there’s no NCI in Associate.

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   • P2-D2 says

     July 28, 2018 at 11:31 am

     Hi,

     If the review leads to an impairment then we would DR Retained Earnings/Share of Profit of Associate CR Investment in associate.

     Thanks

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