Impairment of Goodwill

Hi, I'm not too sure of the context of your two points, if you could please elaborate I'll try and help out. Thanks

Does subsidiary and associate both suffer goodwill impairment or it is just the associate that suffer goodwill?

Sir, In your lecture on Consolidated SPLOCI you mentioned that if the NCI is measured at fair value, impairment should be charged to the subsidiary in the consolidated P&L to give the NCI their share of the impairment. Why is the full impairment charged to P&L not split between the parent and subsidiary with respect to their holdings ? From your example, the total goodwill of 6, should it not be split between the parent and sub and charged to the P&L accordingly ?

@emaarain said: Does subsidiary and associate both suffer goodwill impairment or it is just the associate that suffer goodwill?

Hi, Yes, both the subsidiary goodwill and the investment in associate can be impaired. Thanks

@highway123kid said: Sir, In your lecture on Consolidated SPLOCI you mentioned that if the NCI is measured at fair value, impairment should be charged to the subsidiary in the consolidated P&L to give the NCI their share of the impairment. Why is the full impairment charged to P&L not split between the parent and subsidiary with respect to their holdings ? From your example, the total goodwill of 6, should it not be split between the parent and sub and charged to the P&L accordingly ?

Hi, If you put it in S's column and the total S's profits for the year, then when applying the NCI% you are automatically giving the NCI their share of the impairment. Thanks