- October 19, 2021 at 1:25 pm #638486
The goodwill impairment it will added to consolidated expenses of p&L,
but for the concern of retained earnings from which retained earnings it will be deducted from the parent or the subsidiary. Also do we have to divide it between parent and subsidiary.
Thanks,October 20, 2021 at 8:03 pm #638646P2-D2Keymaster
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Yes, the impairment is an expense and so is added to the other expenses within the Group SPL, thus reducing the group profit. As it reduces group profit then it will also reduce the group retained earnings figure in the Group SFP.
The impairment will be shared between the parent and the NCI using the fair value method. So, in the Group SPL we show the impairment figure in full on the Group SPL and then the split is done at the bottom where we attribute the NCI their share of the profit (incl. the impairment).
In the Group SFP the split is done across the NCI working and the Group RE working.
ThanksOctober 20, 2021 at 10:23 pm #638653
Thanks a lot ,now it is more clear ,Thanks,June 4, 2022 at 6:28 am #657303fredymailaMember
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Also, when calculating NCI as a proportion of FV of net assets,
Goodwill impairment is only attributable to parent interest (group) and strictly not NCI.June 7, 2022 at 6:50 pm #657747
ThanksJune 20, 2022 at 5:35 am #659019
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