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IN Consolidated statement of comprehensive income..
Impairment Of GoodWill COMES where?…In Parents Column OR In Subsidary’s Column?????
Goodwill only occurs when you do a consolidation, so it should not be involved with subsidiary. In the working of Subsidiary net asset, impairment of goodwill is not there.
GW impairment is included in the Consolidated Income Statement. But my question is where do we put it? i saw it is put in COS, Admin expenses, and put as a separate line. Where should we put it if the question is not instructing anything?????
By the way, on second thought, if it is not consolidated statement GW should appear in the subsidiary statement.
Impairment of Goodwill depends on the Goodwill measuring method.
Full Goodwill method: Some part of the impairment would affect the Parent´s and Sub´s Retained Earnings
Proportionate Goodwill method would affect only Parent´s Retained Earnings
In the consol Income statement ( and that’s the ONLY place it will appear (!))it may be shown “pretty well anywhere”. I tend to show it as a separate line – to help the marker. But, if the question states that “Impairment of goodwill should be included within cost of sales / administrative expenses / anywhere else ” then that’s where you should include it.
It features as a deduction in the calculation of consolidated retained earnings – the figure to include in there is the parent company’s share of any goodwill impairment SINCE ACQUISITION.
The year’s impairment, both parent’s share AND nci share, should be included ( somewhere, see above ) within this year’s income statement
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