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Good will impairment Didzis group all to D why has this all gone to them, i know it’s too do with nci valued on a proportionate basis, getting confused with this when would we apply this to the nci again? where can I read up on this again please?
Also couldnt work out where the 12,000 a’s profit after tax figure came from again in wb2,
please point me in the right direction. Got a bit lost – thanks Nicolaahh I have just found where the 12 has come from ! its been a long day! could do with clarification on the goodwill impairment though still !
It’s exactly to do with the basis of the nci valuation
If it’s on a proportional basis then the nci is entitled to their share of the subsidiary’s fair valued net assets – but that doesn’t include any goodwill
So where there is an impairment of goodwill, that impairment goes entirely to the parent where the nci is on a proportional basis
Be fair, you can’t reduce the value of the nci investment by any goodwill impairment where we haven’t given them any goodwill
OK?
yes – thank you very much that has made things a lot clearer and now makes more sense
to me, so would there be a situation where the nci would have any goodwill valuation
in the fair value net asset?Yes – whenever the nci is valued on a full, fair value basis
That means that they get not only their share of the subsidiary’s fair valued net assets but also get an element of goodwill too.
It’s a basis that is both full and fair … hence the name
great thanks , i was getting mixed up if proportional then no, full and fair value basis – yes!
is that correct ?
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