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in chapter consolidated financial position if the fair value method was used to calculate nci why in the workings of net assets of subsidiary why don’t we subtract nci’s share of impairment of goodwill.
Because in the working of net assets of subsidiary there is the retained earnings of the subsidiary
Hi,
It wouldn’t matter which method is used we never deduct the impairment of the goodwill from the net assets working. The goodwill is an asset of the group that has been created on acquisition of the subsidiary so any impairment will go to group retained earnings, unless we use the FV method when we take the NCI share to the NCI working.
Thanks
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