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Dear Sir,
In Q1 of Sep/Dec 2019, the answer said that when proportion method is applied, as only 19.6m goodwill is recognised within consolidate, the impairment attributable to the notional goodwill is not recognised.
But in the calculation table, the amount of impairment for notional goodwill of 4.9m still appears.
Please help me to explain.Thank you.
1. Gross up goodwill to 24.5.
2. Add to other net assets making a total of 130.5.
3. Compare to recoverable amount of 100, making a loss of 30.5.
4. allocate loss:
– 24.5 to goodwill
– balance to other non current assetsAnd watch my debrief again!
I understand your calculation and the calculation in examiner answer is the same.
But I only do not understand the explanation in examiner answer: “when proportion method is applied, as only 19.6m goodwill is recognised within consolidate, the impairment attributable to the notional goodwill is not recognised.”
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