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Ch4, Ex4; Goodwill

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Ch4, Ex4; Goodwill

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by MikeLittle.
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  • June 5, 2015 at 5:37 pm #253886
    Diane
    Member
    • Topics: 21
    • Replies: 39
    • ☆☆

    Hi Mike,

    In this example of where the parent disposes of a subsidiary to have given up control, you wrote that Goodwill is all sold?

    Do we assume that all goodwill is sold once the holding is less than 50%?

    In other past questions (in other papers), their is sometimes goodwill attributed to the NCI. Do I ignore this fact for P2 paper consolidations? Could we not still have goodwill even though we do not hold more than 50% any more?

    June 5, 2015 at 6:44 pm #254062
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23361
    • ☆☆☆☆☆

    When we move from subsidiary down to associate, all goodwill is lost. It may seem unfair but the figure for “fair value of remaining investment” takes it into account

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