[rosekay]

Hi,

I need some help with SBR Specimen paper 2, Question 1 A i. Basically I am trying to work out the carrying value of Chandler. The examiner calculated NCI using the proportionate method, and as far as I am concerned, NCI does not take any goodwill when using this method.

I was under the impression that to calculate the carrying value of an entity, you take the year end Net Assets + Goodwill + Profit. Impairment is than calculated Recoverable Amount less Carrying Value and since we are using the proportionate method, 100% impairment goes to P/L.

The examiner calculated the carrying value is calculated differently and the impairment amount was not fully taken to the P/L but only 80% (which is the controlling part of the business).

Can someone help me please ?

Thanks in advance.

[rosekay]

Thank you for your reply.

On another note, could you kindly let me know the difference between a receivables ledger and a receivable ledger control account ?

Thanks and Regards

[rosekay]

Hi Mr Moffat,

Thank you for the above.

[Author]

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