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Impairment in Consolidated st. of PL and OCI

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Impairment in Consolidated st. of PL and OCI

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by AvatarStephen Widberg.
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  • August 21, 2020 at 2:31 pm #581414
    Avatarwasimomarshah
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    I cannot for the life of me understand why do we include goodwill impairment for the NCI in the statements of the group. Why is this being included in the group statement? Why not the impairment of goodwill excluding the NCI’s portion?

    Btw this is for SBR

    August 21, 2020 at 5:18 pm #581428
    AvatarStephen Widberg
    Keymaster
    • Topics: 17
    • Replies: 3452
    • ☆☆☆☆☆

    The total impairment charge must be recorded in the profit and loss account.

    This is because group accounts must show total assets liabilities income and expense for the whole group irrespective of ownership

    If we are using full goodwill the NCI must be given their share in the NCI working.

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