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Hi Sir,
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,
Hi,
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.
Thanks
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.alawi sayed wrote:Thanks
Ok
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