Laurel Co – consolidation BPP Kit pg 103

This topic has 1 reply, 2 voices, and was last updated 5 years ago by P2-D2.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
May 31, 2020 at 4:04 pm #572444
anniebabe
Participant
- Topics: 33
- Replies: 99
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: 7232
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.