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Dear Sir,
I went through P2 exam Decanber 2011. I have a problem with question qestion 3 (Captive goodwill impairement) I find difficult to understand from where the unrecognised non-controling interest (20%) figure of $120.20 comes. Please I need your assistance for this question. Thanks looking forward hearing from youBechir
I went through P2 exam Decanber 2011. I have a problem with question qestion 3 (Captive goodwill impairement) I find difficult to understand from where the unrecognised non-controling interest (20%) figure of $30.05 comes. Please I need your assistance for this question. Thanks looking forward hearing from you
Thank you
BechirHi
Can you see where 120.2 comes from – the figure above 30.05 in the answer workings W3 captive Goodwill calculation? That’s the goodwill from the parent company’s investment and the parent’s investment is 80% of the shares. The implication is therefore that the nci’s goodwill share of goodwill is their 20% shareholding compared with the goodwill attributable to the parent’s 80% holding.
Thus the goodwill attributable to the nci is 20 / 80 x 120.2 = 30.05
OK?
Dear MikeLittle
Thank you a lot for helping understand the answer.
Have a nice weeknd.Bechir
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