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Hello respected tutor, I hope you are doing well.
This is the question from section b of the mock exam.
Q23. What is the carrying amount of the non-controlling interest in Dimely Co reported in the consolidated statement of financial position at 31 December 20X7?
$296,850
$300,000
$311,250
$319,350
My question is concerning the impairment of goodwill by 20% on 31.12.20X7. Shouldn’t the value of impairment also reduce the carrying amount of NCI. Since the answer just takes into account the FV of NCI on Date of acquisition + proportionate share of post-acq profit + proportionate share of increase in fair value financial assets in OCI.
In short, my question is concerning the impairment of goodwill by 20% and its impact on carrying value of NCI because according to my understanding if FV of NCI is used then this will proportionately impact the carrying value of NCI. Please correct me and help me understand.
There is no option reflecting the impairment of goodwill by 20% too.
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