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For this question it says,
Prepare extracts from Bycomb’s consolidated statement of profit or loss for the year ended 31 March 2015,
for profit or loss attributable to the non-controlling interest.In the answers, impairment of goodwill (per question) (500) is taken as the full amount. I thought the NCI figure was their portion of the impariment of goodwill. and not the entire amount?
Well, of course the full 500 is charged to cost of sales. And the nci get their share of this year’s subsidiary profits less their share of the goodwill impairment
In working (iii) the subsidiary’s profit is shown from which is deducted the goodwill impairment and then the nci share of that subsidiary adjusted profit is calculated (20% x $1,015)
In that way the nci is charged with their share of the goodwill impairment
Ok?
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