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NCI share of Impairment losses BPP activity 2 basic groups

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › NCI share of Impairment losses BPP activity 2 basic groups

  • This topic has 1 reply, 2 voices, and was last updated 3 months ago by Stephen Widberg.
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  • December 9, 2025 at 7:49 am #723898
    IqmalKhushairi
    Participant
    • Topics: 25
    • Replies: 8
    • ☆

    In Bpp Activity 2 on basic groups, under the NCI calculation, NCI share of impairment losses on the proportionate share method, why does the impairment loss is 0, why doesnt we impair the NCI by 24*40%, just like in fair value method where the NCI share of impairment loss is 40*40%

    December 13, 2025 at 8:29 am #723944
    Stephen Widberg
    Keymaster
    • Topics: 17
    • Replies: 3444
    • ☆☆☆☆☆

    In the BPP answer the 2 goodwill figures are 400 and 240 and the impairments are 40 and 24 (both 10% as stated in the question). In part 1 the loss must be shared with the NCI because we are valuing NCI at fair value. In part 2, no goodwill is attributable to the NCI , so no loss will be chaged. (If in doubt, look back at our groups lectures).

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