[learning1]

Passed with 83%. Finally, I’ve finished all of the exams. A huge thank you to OpenTuition and all of the lecturers. The notes and videos are excellent! Thank you!

[learning1]

Many thanks for your response! Much appreciated.

[learning1]

Hi Stephen,

Many thanks for your response.

I’m still not understanding completely.

I understand that with Impairment of Full Goodwill, that Group Retained Earnings and NCI are both deducted their share of the goodwill impairment. But the thing that confuses me is how this makes it way to the P&L statement since the journal entries are as follows;

CR goodwill 2
DR GRE (60% of 2) 1.2
DR NCI (40% of 2) 0.8

Why this is confusing to me is because with the impairment of partial goodwill (after grossing up etc) the journal entries are;

CR Goodwill
CR Net Assets
DR P&L

Here the debit goes to P&L, but with full goodwill the debits go to GRE and NCI.

Why are these journal enties different between Full and Partial goodwill? And with Full Goodwill, how does the impairment makes its way to the P&L statement with journal entries?

Any help would be much appreciated.

[Author]

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