goodwill impairment - Group reporting

KKhiloni4y ago

Watts Co acquired 70% of the share capital of Pilkington Co on 1 January 20X2 for $300,000. The goodwill arising on consolidation has been impaired by $50,000 as at 31 December 20X5. The share capital and reserves of the two companies as at 31 December 20X5 were as follows: Watts Co Pilkington Co Share Capital $400,000 $150,000 Retained earnings $300,000 $200,000 At the date of acquisition Pilkington Co had retained earnings of $125,000. Watts Co measures the non-controlling interest as the proportion of net assets of the subsidiary. In the consolidated statement of financial position of at 31 December 20X5 what amount should appear for the non-controlling interest? My answer is coming $90000. Is it right? Please help in this one

FFederico4y ago#1

Consideration 300,000 NCI ( 30%* 275,000) 82,500 Less sub's NET ASSET at acq. date (275,000) 107,500 Less Impairment (50,000) GOODWILL 57,500 NCI: 82,500 22,500(30%*75,000) (15000) (30%*50,000) Impairment 90,000 Total You'r right! Bye