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HI
Have anyone done the Dec 2011 Q1 and do you know why or how they unrecognise nci with 30.05 …
really appreciate your help
Thanks
Lizzie, I am not sure about 30.05… R U talking about 20% transfer on 30.11.2011 ?
Unrecognized nci is referring to the impairment calculation of Captive. Basically, the nci of Captive is worked out on a proportional basis, which means no goodwill is attributable to the nci. When working out the impairment, you have to gross up the goodwill for the nci, in order to compare with the recoverable amount (i.e. as if nci was charged with full goodwill).
In this example, the goodwill of Captive is 120.2. Nci in captive is 20%. Therefore, the grossed up goodwill is 120.2 * 100/80 = 150.25. Or to put it another way, unrecognized nci (or notional nci which is another way of referring to it) is 120.2 * 20/80 = 30.05 + 120.2 = 150.25.
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