Goodwill Impairment in consolidations (Parent + Subsidiary + Associate)

KKevin10y ago

Hi, i have a question here.... When you have a goodwill impairment in a scenario where you have only a Perent and Subsidiary, it is worked out liked this : Prpoportionate Method : Deduct from Grp RE Deduct from Goodwill in Grp SFP FV of NCI Method : Deduct from Goodwill in Grp SFP Deduct from NCI calculation (NCI % x Impairment) Deduct from Grp RE (% of P holding in S x Impairment) If you have a Goodwill Impairment in a scenario where you have a Parent, a Subsidiary and an Associate, how this is worked out?

HHannan10y ago#1

Goodwill will not be touched now since Associate is not a part of the group, instead we will calculate 'investment in Associates' which will be shown under non current assets in CSFP. Investment in associates: xxx Cost of investment in A xx +post aquisition profit xx - impairment full $ (xx) And group RE will be adjusted with below 2 lines: +Parent's % share of post aquisition profit in A xx -impairment in Associate full$ (xx) So this way an associate's impairment is adjusted in NCA and in Reserves. Thanks

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