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

Comments

1. latifad says

   May 15, 2020 at 11:35 am

   Hi
   At Acquisition date– Is there an adjustment to the carrying value of Associate needed if
   there is a difference between FV of Associates Net Assets and carrying value because of the revaluation of PPE in Associate (Associates OCI).

   If the adjustment to carrying amount of Associate arises, would you please explain where this adjustment is posted (in A’s books and Consolidated accounts (P and A)).
   Thank you.

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2. lolaliong says

   July 22, 2019 at 10:29 am

   Dear sir,

   Acoording to page 21 of the notes, Illustration on Subsidiary Impairment (Partial Goodwill), it states that 7mil relates to NCI & cannot be processed as an adjustment. The subsi impairment is 40mil in total, and the NCI is 20%. How do I get the 7mil?

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   • jiamulin says

     October 23, 2019 at 4:22 am

     Hi Sir,

     I have the same queries. why it is not 8 Mio = 40 Mio * 20%?

     Thank you!

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   • Stellar28 says

     June 5, 2021 at 6:01 pm

     As we gross up the goodwill to 100% , the part of impairment that is offset against Goodwill related to NCI is 7 mil which is not recognised because it was just to compare like to like. As yu said, the total impairment to NCI should be 8 million , out of which 7 million we discussed about, the other million was offset against net assets.
     Pardon me if I am wrong, Chris?
     Thanks

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3. 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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4. 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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