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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Picant qstn conso June 2010
Hi sir,
I have doubt in investment in associate part where in adjustment 4) it says that impairment test were carried out 31/3/2010. Which concluded that the value of investment in Alder(associate). Was not impaired but due to poor performance,consolidate goodwill was impaired
I am not able to understand when calculating investment in associate why they didn’t deduct impairment of associate ???
Is that bcz qstn says alder was not impaired due to poor performance???
Hi,
If they say that the value of the investment is not impaired then there is no adjustment to make. I presume that the goodwill impairment is in relation to the subsidiary and not the associate, hence the deduction would be to the goodwill figure in the group accounts.
Thanks