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Goodwill Impairment in consolidations (Parent + Subsidiary + Associate)

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Goodwill Impairment in consolidations (Parent + Subsidiary + Associate)

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by hannanmamun.
Viewing 2 posts - 1 through 2 (of 2 total)
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    Posts
  • November 18, 2015 at 2:19 pm #283623
    Kevin
    Member
    • Topics: 7
    • Replies: 3
    • ☆

    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?

    November 30, 2015 at 2:54 pm #286443
    hannanmamun
    Member
    • Topics: 0
    • Replies: 6
    • ☆

    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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