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Notional Goodwill when impairment occurs

HHesham3y ago
Hello https://opentuition.com/topic/notional-goodwill-in-impairment-loss-calculations/ I found the following answer for that question: "Full goodwill – share loss between NCI and RE – because goodwill is on the WHOLE BUSINESS. Prop goodwill – no loss allocated to NC!" that’s OK and understood. But at the following example it is prop goodwill at acquisition and the loss allocated to NCI, and no notional goodwill calculated, is there an explanation please? Thanks W7 Impairment of Beta as at 30 September 20X2 $000 Net assets of Beta 450,240 Goodwill on acquisition 88,920 –––––––– 539,160 Recoverable amount of Beta as a CGU 500,000 –––––––– Impairment 39,160 –––––––– Non-controlling interest in Beta $000 At acquisition (W2) 98,000 NCI share of movement (25% x $61,160 (W1)) 15,290 Impairment (25% x $39,160 (W7)) (9,790 ) –––––––– 103,500 Impairment for Parent Retained earnings (75% x $39,160) (W7) (29,370 )
stephenwidbergstephenwidbergTutor3y ago#1
Hi. Where is the example from? It's not ours, is it? It looks like a working for full goodwill not proportionate goodwill. Please let me know.
HHesham3y ago#2
Hello Dear, It is the first question of IFRSDip Dec 2022 exam. I found the following: - no notional goodwill calculated, when the impairment calculated, the parent goodwill at acquisition added to the net assets of subsidiary. - the impairment applied to both parent and NCI. I think you agree with me, something is wrong at the answer. Otherwise when we do the notional goodwill? and when not? and when NCI affected and when not? Thanks
HHesham3y ago#3
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stephenwidbergstephenwidbergTutor3y ago#4
Doesn't make any sense at all to me. I would stick with our approach, which is also the approach in the standard. :)
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