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- This topic has 5 replies, 2 voices, and was last updated 1 month ago by P2-D2.
- January 14, 2023 at 10:17 am #675899
How is impairment of goodwill accounted for in the group accounts. How is impairment of goodwill adjusted.January 15, 2023 at 9:36 am #676013
This is covered in the class noted and videos.January 16, 2023 at 9:45 am #676444
In the bpp kit, an impairment of goodwill has been deducted from the retained earnings of the subsidiary. Is it correctJanuary 18, 2023 at 9:15 pm #676950
Yes, under the full goodwill/fair value method.January 20, 2023 at 2:58 pm #677110
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 workingJanuary 22, 2023 at 8:21 am #677199
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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