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when calculating retained earnings…why we use the percentage of acquisition for impairment of goodwill?
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hi bcoz when consolidating retained earnings we are using the group share which is the same as the percentage of acquisition so we have to strike the same percentage for the impairment of the goodwill. hope it will help u
Sounds good to me. By the time we are reducing the retained earnings by the goodwill impairment, the only element within retained earnings is “H’s own + H’s share of S post-acq retained” ie there’s nothing in that figure which relates to the nci – it all ( at this stage in the working ) is attributable to the parent / holding company
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