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Bpp question 121Viagem sum
Adjustment (v) although subsidiary has been profitable since it’s acquisition by parent the market for subsidiary’s product has been badly hit and parent has calculated that the goodwill has been impaired by $2m as at 30 September 2012I don’t why we don’t deduct impairment from goodwill ??
Thank u so much sir
Bpp question 123 adjustment (iv)
Due to recent adverse publicity concerning one of major product lines goodwill arose on the acquisition of subsidiary has been impaired by $500000 as at 30sept 2014 . Goodwill impairment should be treated as an administrative expenseHere also same they have not charged impairment under goodwill I don’t kno why
Re Viagem … you have me worried! What do you mean “We don’t deduct the impairment from goodwill”?
Why would you want to?
This is what the question asks for:
“(a) Calculate the consolidated goodwill at the date of acquisition of Greca.”
BPP 123 Plastik sum
Normally we deduct impairment from goodwill then retained earning and NCI will be charged according to their shares
But in these two question they have not deducted impairment from goodwillIn Viagem the question asks you:
“(a) Calculate the consolidated goodwill at the date of acquisition of Greca.”
As at the date of acquisition, there was no impairment!
In Plastik, the goodwill impairment is expensed in Administrative Expenses and is deducted in the statement of financial position
Working iv shows the goodwill calculation and the Administrative Expenses line in the Statement of Profit or Loss shows the $500 deduction
I wonder why you can’t see it?
OK?
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