change in Group structure – From Control to No Control

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January 28, 2018 at 11:18 am #433592
aamir2111
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Dear Tutor,

If P sells shares and becomes Non Controling from Controling enity, then in calculation of Group P/L on disposal of shares the goodwill figure which is used is it Goodwill as at date of acquisition of controlling interest or is it net off impairment as at date of disposal?

It should be net off impairment, isn’t it?
January 29, 2018 at 10:34 pm #433907
P2-D2
Keymaster
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Hi,

It is the goodwill figure at the disposal date, so will be after any impairment since the initial acquisition date.

Thanks
January 30, 2018 at 5:49 am #433923
aamir2111
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Thanks Sir.
January 30, 2018 at 5:57 am #433924
aamir2111
Participant
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Dear Tutor,

Similarly, in case of gain/loss on translation of overseas subsidiary, we will have to use Goodwill net off impairment in the profoma, right?
January 31, 2018 at 8:57 pm #434303
P2-D2
Keymaster
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Hi,

Correct, the goodwill is translated into the presentation currency of the group net of any impairment.

Thanks
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