- This topic has 1 reply, 2 voices, and was last updated 9 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Dear Sir(s),
I just wanted to know while calculating cost of investment in Subsidiary, Impairment Testing of goodwill is requires or not.
If required then how should we calculate it.
Awaiting for your reply.
Thanks and Regards
RahulShah,ACA,B.Com
Senior ConsultantWhoa! With all those qualifications, I should be asking you
No, cost of investment is the cost of the acquisition
But we must consider the FAIR VALUES of the subsidiary at date of acquisition and that could well involve impairments
Subsequently, test for impairments – that would presumably be rolled into goodwill impairments
Does that answer it?
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.