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Example 4 (Page 19): why goodwill impairment charge to subsidiary's admin exp?

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Example 4 (Page 19): why goodwill impairment charge to subsidiary's admin exp?

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  • October 3, 2017 at 11:06 am #409329
    trinhnguyen
    Participant
    • Topics: 9
    • Replies: 2
    • ☆

    Hi sir,

    Goodwill impairment (20%*$30mil) should be reduced goodwill and be charged to admin expense of parent company instead of subsidiary’s P&L.

    Other matter: land and building evaluation surplus of $50 mil is the one given in P&L of subsidiary?

    Regards,

    October 4, 2017 at 9:16 pm #409483
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7212
    • ☆☆☆☆☆

    Hi,

    If the goodwill is measured using the full goodwill method then we show it in S’s column so that the NIC gets their share.

    Yes, the revaluation is that from the other comprehensive income in the SPLOCI.

    Thanks

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