Highveldt

equity 80+40+134,fv adjust 20,titanware 40,decapitalised (18) total 314. cost of investment 310. i think what next to you is very easy,do u think so?

yeah?correct,75%*fv of s @DOA,and if its requirement is let u use the new method,which means it gave u the FV of NCI at the date of aquisiton,u should also use 25%*FV of S@DOA then deduct it from the FV of NCI@aquisition.HOpe u can get it,by the way,happy weekend!

yes, ok except …..

The BPP way ( and they are the approved platinum supplier! ) amalgamate the goodwill and deduct the impairment from the total goodwill.

Then, when it comes to consolidated retained earnings, they deduct just the parent’s share of the impairment and, in the nci working they do it this way:

nci at date of acquisition

+

their share of post acquisition retained

–

their share of the goodwill impairment

This differs – and sometimes gives a different answer – from the way the course notes tackle the same problem

Because BPP are the platinum publisher I am reluctantly having to bring my own course notes into line with their way of dealing with the problem.

In my ( humble ) opinion, to deduct from the nci an element of impaired goodwill when ( per my way ) they were not entitled to ANY goodwill is illogical.

But because of their platinum status I presume that Steve Scott also agrees with this illogical ( in my view ) approach, so that’s the way I’m going to have to teach it in future.

And it’s ONLY in the situation of the allocation of the impairment that the BPP way and my way differ – so I wouldn’t get too uptight about it

If it’s a separately identifiable asset at date of acquisition it should be recognised – it looks like I’m on GTG’s side here – but I can’t remember the BPP answer.