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goodwill

Xxyzc3y ago
How is impairment of goodwill accounted for in the group accounts. How is impairment of goodwill adjusted.
P2-D2P2-D2Tutor3y ago#1
This is covered in the class noted and videos.
Xxyzc3y ago#2
In the bpp kit, an impairment of goodwill has been deducted from the retained earnings of the subsidiary. Is it correct
P2-D2P2-D2Tutor3y ago#3
Yes, under the full goodwill/fair value method.
Xxyzc3y ago#4
If impairment of goodwill is deducted from the retained earnings of the subsidiary using the full goodwill method, then is it included in the net assets of subsidiary working
P2-D2P2-D2Tutor3y ago#5
Sorry, I read it in the earlier post that the impairment is deduted from the retained earnings of the parent, where you have stated it is the subsidiary. The impairment is deducted from the retained earnings of the parent. Full goodwill method - DR Retained earnings P (P's%) DR NCI (NCI's %) CR Goodwill (100%) Proportionate method - DR Retained earnings P (100%) CR Goodwill (100%) We are not adjusting the retained earnings of the subsidiary.
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