Goodwill Impairment NCI @ FV

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May 24, 2021 at 4:19 pm #621650
james8500
Participant
- Topics: 68
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Hi

BPP Exam kit Q311 Plastik Co

When calculating group retained earnings – can you please advise why in the solution has goodwill impairment has been deducted from subsidiarys profit in full?

I thought that goodwill impairment was shared between parent & NCI?

Thanks
May 29, 2021 at 8:26 am #622118
P2-D2
Keymaster
- Topics: 4
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Hi,

If you deduct it from S’s profit for the year then the NCI will automatically receive their share when multiplying by the NCI percentage. The parent then receives their share when the balancing figure of the parents profits from the group profits is calculated.

Thanks
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