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Notional goodwill & impairment loss

Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › Notional goodwill & impairment loss

  • This topic has 0 replies, 1 voice, and was last updated 8 years ago by vuvietquang90.
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  • May 1, 2017 at 4:05 pm #384461
    vuvietquang90
    Member
    • Topics: 36
    • Replies: 87
    • ☆☆

    Dear tutor,
    With NCI at proportion of net assets

    Less say we have imp loss of $30,000
    Then share of parent is 80% & nci is 20% & goodwill of $48,000 (notion g/w is $60,000)
    Then we will have actual impairment loss attributable to parent only of $24,000 ($30,000 x 80%).
    In another scenario, i take out only notion goodwill attributable to nci of 12,000 (48,000×20%/80%)
    Then we will have impairment loss of 18,000 (30,000-12,000)

    It seems unclear for me about these imp losses

    Can u explain for me the difference between the remainder of impairment loss after stripped out grossed up goodwill (notional attributable to NCI)
    And the actual impairment loss (parent % x total impairment loss)
    Which figures should we use to write down into g/w and post acq profit? Which scenarios should we use?

    Thank u in advance

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