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Sir, in example 4 for SPLOCI, it says that there was a 20% impairment in the goodwill of Vader. However, the goodwill was arisen as a result of vaders acquisition of M Co. So, shouldn’t it be that there was a 20% impairment in M co’s goodwill?
or is it because the goodwill is owned by vader and therefore it was an impairment to vader?
I just got confused and if you could kindly clarify, it would help me out a lot. Thank you sirGoodwill arises only in group accounts.
The goodwill is not really owned by anyone – just a balancing figure in the group accounts.
You may be over-conceptualising.
If impaired by 20% deduct 20% from CA.
(PLEASE USE THREAD HEADER SUCH AS IMPAIRMENT)
This puts my mind at ease- thank you
I’ll definitely use the header from now on
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