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Consolidation Disposal Scenario

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Consolidation Disposal Scenario

  • This topic has 2 replies, 2 voices, and was last updated 9 years ago by Avatarfazeel93.
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  • May 31, 2016 at 5:49 pm #318479
    Avatarfazeel93
    Member
    • Topics: 71
    • Replies: 49
    • ☆☆

    Why we take complete impairment of goodwill in income statement while in retained earnings only the group share?

    June 3, 2016 at 10:11 am #319072
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Hi,

    It is because we control the subsidiary and we consolidate 100% of the subsidiary to show control.

    We do then split out the ownership similar to what we do in the groups SFP with our allocation of the group profit attributable to the parent and NCI at the bottom of the group SFP.

    Thanks

    June 3, 2016 at 1:47 pm #319131
    Avatarfazeel93
    Member
    • Topics: 71
    • Replies: 49
    • ☆☆

    thanks i understand

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