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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.
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?
Hi Sir,
I have the same queries. why it is not 8 Mio = 40 Mio * 20%?
Thank you!
Dear Sir,
Why we don’t need to calculate the P’s % of subsidiary when doing impairment on sub?
Thanks
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
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.
Hi,
If the review leads to an impairment then we would DR Retained Earnings/Share of Profit of Associate CR Investment in associate.
Thanks