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Hi Mike!
I have actually do watched your lectures on consolidation but still have some issue concerning you explanation about how or why there is no goodwill impairment to the NCI if they are being valued at a proportionate basis. Could you please make it clear for me?
Thanks in advance.
If nci is valued on a proportionate basis, then the value of their investment is simply their percentage share of the fair value of the subsidiary’s net assets as at date of acquisition
That means that their investment is merely worth their share of the fair value of identifiable subsidiary net assets
So … no goodwill, then!
So if their investment is valued as having no element of goodwill, how could you justify charging them with an apportionment of goodwill impairment
In all conscience … you couldn’t
Could you?
OK?
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