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Accounting entries for impairment loss

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Accounting entries for impairment loss

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarP2-D2.
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  • Author
    Posts
  • December 1, 2017 at 7:55 pm #419496
    Avatarmsk29
    Member
    • Topics: 82
    • Replies: 65
    • ☆☆

    Hello.

    I would like to confirm the following. Please let me know if I am wrong somewhere.

    1) If we are told to use NCI at full acquisition method,the accounting entries for impairment loss would be:
    DR group retained earnings (p’s share) X
    DR NCI (nci’s share) X
    CR goodwill X

    2) If we are told to use NCI at proportionate method:
    DR group retained earnings (full amount) X
    CR goodwill X

    Thanks.

    December 4, 2017 at 8:36 pm #420385
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Correct, well done. This is important stuff for the exam if ever there is an impairment.

    Thanks

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