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Hien.
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gulliver
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I have a problem with the following data:
1. Parent acquires 6 years ago 80% common shares and 20% preferred shares of subsidiary.
2. Subsidiary at acquisition had 80k retained earnings.3. Actual profit and loss statements for the two companies.
4. Goodwill impaired by 10kRequired:
Consolidated comprehensive profit and loss statementooooooooooooooo
My questions:
A. How do I work goodwill impairment?
B. What do I have to do with the retained earnings of the subsidiary at acquisition (80k)?
C. Can I say that the non controlling interest is just 20%?Thank you!
gulliver
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Clarification:
C. Non controlling interest calculated as 100%-80% parent’s acquisition of common sharesHien
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My opinion is:
A. GW impairment of 10k shall be written down from subsidiary’s RE. This amount should be shared between parent and NCI;
B. You should be provided with post requisition RE so that you can decide how much will be shared.
C. 20% preferred shares shall be recorded as financial instrument, right?
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