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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? ThanksW7 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 )
––––––––
103,500Impairment for Parent Retained earnings (75% x $39,160) (W7) (29,370 )
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.
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
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