Hi,
A couple of times in questions I have arrived at the wrong answer for NCI in the consolidated IS because I have attributed part of an impairment loss to NCI, whereas the answer seems to attribute the whole impairment loss to the parent. In both questions I have noticed this the NCI is valued at full value, so as I understand part of the goodwill is attributable to them and therefore an impairment should be allocated to them. I don't really understand why the answers are allocating the whole goodwill impairment to the parent, especially when I have seen goodwill impairments being split on consolidated SOFP.
The two questions I have noticed this in are both in the BPP 2011 exam/revision kit, Question 44, Patronic and Mock exam 2 question Hosterling
Would anyone be able to help?
Thanks
A couple of times in questions I have arrived at the wrong answer for NCI in the consolidated IS because I have attributed part of an impairment loss to NCI, whereas the answer seems to attribute the whole impairment loss to the parent. In both questions I have noticed this the NCI is valued at full value, so as I understand part of the goodwill is attributable to them and therefore an impairment should be allocated to them. I don't really understand why the answers are allocating the whole goodwill impairment to the parent, especially when I have seen goodwill impairments being split on consolidated SOFP.
The two questions I have noticed this in are both in the BPP 2011 exam/revision kit, Question 44, Patronic and Mock exam 2 question Hosterling
Would anyone be able to help?
Thanks