Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › D-Shaped Groups : Ex 4- Anda, Kristina, Liene
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- April 30, 2011 at 7:43 pm #48281
Hello!
I was going through Anda, Kristina and Liene – example 4 on chapter 3. I understood upto goodwill calculation.. But for the divison of goodwill for K in L (dividing 18000 into 12600 and 5400), this 5400 is the goodwill for NCI in K right? If it is the NCI for K, then should it not be included in the total NCI goodwill together with the NCI for A in K (of 9900).. I understand that the L’s NCI is excluded as it is taken on a proportional basis. But since this is the NCI for K, should it not be included? I hope my question makes sense..Thanks in anticipation!
May 2, 2011 at 12:51 am #81314Hi,
The division figures i can see is 14,000 and 6,000. Total goodwill is 84,200. (OT note June 2011)
Looking at the group structure, the 30% NCI in K refers to the direct holding, so there is no need to add NCI goodwill from L. Also the question gives the K’s NCI goodwill ($15,000) directly, there is not need to change this figure.
Hope this helps.
May 8, 2011 at 3:38 pm #81315Thanks Julia for the reply
And sorry for replying this late.
What I dont get is why we are not adding the NCI Goodwill from K in L. That is the 6000 (after impairing it). Because this goodwill also will be part of the NCI of K and not the NCI of L. Since it is NCI of K should we not include it, like the other NCIs? - AuthorPosts
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