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Hi, Would like to ask why NCI is not allocate any goodwill under proportionate method? Understand that NCI is entitled only to their share of the subsidiary’s fair valued net assets, but why no goodwill for NCI?
Thanks.Hi, also would like to know the double entry of the impairment loss for proportionate method and full fair value method. Thanks.
Proportionate goodwill means that goodwill is only calculated on the parent’s share of the subsidiary – what the parent paid compared to what the parent got.
So, the full amount of the impairment is charged to the parent.
DR RE CR GW
Full goodwill is calculated on the whole subsidiary – what the parent paid PLUS what the NCI would have paid if they had been buying the subsidiary compared to what EVERYONE got.
So, the impairment is SHARED between the parent and the NCI.
DR RE DR NCI CR GW
Hi, Just to clarify the full goodwill that double entry. By Dr. RE (Deduct parent portion RE) and Dr. NCI (Deduct NCI portion RE) right?
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