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greetings. i would like to know when do we need to add fair valuw of NCI plus post profit attributable to NCI in SOPL ? some questions require to add in but some don’t.
If the question is asking for a consolidated statement of profit or loss then there’s no “fair value of nci at date of acquisition” to worry about
It the question is asking for a consolidated statement of financial position then to arrive at the nci figure we need to take:
Fair value of nci at date of acquisition +
Nci share of subsidiary post-acquisition retained earnings –
The nci share of goodwill impaired since acquisitionOk?
there were two example from BPP’s revision kit. no.28 require SOPL, so they did not calculate fair value of NCI but for no.29 require SOPL and SOFP, therefore we need to include the fair value of NCI too ?
okay thank you for that ! and also the other one would be impairment of goodwill. when do i need to minus subsi’s impairment of goodwill from the Computation of Goodwill Statement and when i do not ?
Do you mean “subsid’s impairment” or do you mean the nci share of the impairment?
In working W2 Goodwill, calculate the goodwill, calculate any impairment (if given as a percentage) and deduct in full from the goodwill
But we may need to allocate that goodwill between “our share” and the nci
This is necessary only if the nci is on a full, fair value basis. If nci is proportional, then no impairment is allocated to the nci
Ok?
i mean subsid’s goodwill impairment. cause it confuses me whether do i needa minus the goodwill impairment from my consolidated goodwill.
Absolutely – just like you deduct depreciation from the consolidated assets
however. base on past year questions :Bycomb and Plastik. Bycomb’s subsi’s goodwill impairment had minus off from the working of Goodwill Acquisition Statement. but Plastik does not minus off but instead, they minus of from Retained Earning and NCI.
BPP’s question minus the goodwill impairment from the Goodwill Acquisition Statement , RE and NCI.
The whole of accounting depends upon DOUBLE ENTRY!
When it was debited to retained earnings and the nci, where do you imagine the credit entry was? To Goodwill!
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