impairment loss

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April 29, 2021 at 11:02 pm #619234
thapa7
Participant
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sir,
if the question says goodwill has been impaired by 2million , we need to credit goodwill by 2million right?
but in bpp practise book question number 309 (a) , they havent credited goodwill for impairment loss ? why is that ?
May 1, 2021 at 12:55 pm #619367
P2-D2
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- Topics: 4
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Hi,

Yes, an impairment is the reduction in the value of the goodwill asset. A credit entry is therefore required to reduce the goodwill be the 2 million.

Thanks
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