Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Laurel Co – consolidation BPP Kit pg 103

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Laurel Co – consolidation BPP Kit pg 103

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 31, 2020 at 4:04 pm #572444
    anniebabe
    Participant
    • Topics: 33
    • Replies: 102
    • ☆☆

    Question says:-
    Cumulative impairment losses on recognised goodwill amounted to $15million at 31 December 2009. No impairment losses have been necessary relating to the associate.

    I had put the full impairment in retained earnings – as it mentions year end date.
    But answer says the full amount is in goodwill.

    Could someone explain please I have a mind block on this one.

    Many thanks

    June 4, 2020 at 10:46 am #572841
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7149
    • ☆☆☆☆☆

    Hi,

    Impairment losses are recognised as a reduction to goodwill and a reduction in group retained earning and NCI when we are preparing the group SFP. The parent share of the impairment goes through group RE working and the NCI share goes through the NCI working.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.