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Nci share of goodwill impairment in subsidary

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Nci share of goodwill impairment in subsidary

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.
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  • September 11, 2016 at 9:11 pm #339977
    zaheer10111
    Member
    • Topics: 24
    • Replies: 16
    • ☆

    Sir , in chap 7 example 5 ,lecture 4, at 07:50 , you said f there was any goodwill impairment none will go against them because it is proportionately valued.

    I cannot understand this and how it is proportionately valued?

    please reply, thanks in advance.

    September 13, 2016 at 11:16 pm #340409
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23315
    • ☆☆☆☆☆

    Have you watched the lecture where I show the effect of having the NCI proportionately valued?

    In this situation, the NCI is valued on the basis of their proportionate share of the subsidiary’s fair valued net assets at date of acquisition … ie they are NOT entitled to any goodwill that may arise on that acquisition

    Does that explain it for you?

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