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May 24, 2020 at 6:39 pm
Thank you, very appreciate.
March 16, 2020 at 9:54 pm
in case of impairment of goodwill in proportionate method we will account for only 80%.. am i right?
one thing i don’t get is in both methods we are adding NCI to Fv of consideration. so why is it different goodwill in both i mean in proportionate we are saying it’s only parent and in FV we are saying its for both.
from the lecture i just got the point that if NCI is at FV then it will be full good will..
i am not still getting logic that why one is proportionate and other is full even if we add NCI to consideration in both method.
May 21, 2020 at 9:21 pm
Hey, not sure if you’re still looking for a reply. I was wondering the same thing as you. ACCA have a technical article on this: https://www.accaglobal.com/ie/en/student/exam-support-resources/professional-exams-study-resources/strategic-business-reporting/technical-articles/impairment-goodwill.html
Using their method, which for proportionate method doesn’t include NCI, I actually got the same answer as above (which makes sense when you look at the calculation. Just the percentage of the parent’s share of N/A. The calculation above adds in the NCI and then takes away the full amount. Ultimately the same thing but for understanding I find it easier not to include the NCI. See calculation below. Hope this helps, best of luck in the exam!
Parent’s cost of investment $5400
Less the parent’s share of the net assets (80% x $3400) ($2720)
Goodwill attributable to the parent $2680
January 4, 2019 at 5:21 am
Hello Sir, in Example 3, for working of group retained earnings why have we worked out (80% x 400) only considering post acq. Of R.E. whereas in the Example 2 for the same R.E working we have considered full post acq. Profit.
January 12, 2019 at 9:16 am
We are now bringing in the other components of equity in to the questions now, so any movement in the net assets of the subsidiary will constitute not just a movement in the retained earning as we’ve seen in previous examples but also a movement in the other components of equity.
When looking at the parent’s post-acquisition share we need to take the post acquisition share of profits/retained earnings to the group retained earnings working and the post acquisition share of other components of equity to the group other components of equity working.
September 27, 2018 at 6:16 pm
Hi Sir, in this we have calculated other components of equity and u mention there is a video on it. however i cant seem to find the video on other components of equity
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