In June 2014 past paper, the impairment of goodwill is reduced from parents profits. But the problem says that full goodwill method is used. Is there something wrong? Because goodwill needs to be proportioned between parent and NCI, thus shoulb be deducted from sub.
It states that the adjustment has been put through Marchant’s financial statements, so any adjustment to the impairment needs to be corrected through Marchant’s accounts.