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Hi guys!
Just a quick question. In Full Goodwill method, do we also have to compare the impairment amount and goodwill amount to decide whether or not the goodwill could be reduced to zero?
Does it also mean that if goodwill is higher than the impairment amount (in full goodwill), we’ll just calculate impairment loss on P’s share using its effective interest (for complex groups)?
Thanks!
Hi Wesbys!
I had that question because in Q1 December 2011, Aquisition of Captive using partial goodwill the goodwill (grossed up) is greater than the impaired amount so the Goodwill was not reduced to zero. Is this also the case for full goodwill method? Or is it that we always have to reduce goodwill to zero (for full goodwill method) without comparing it to impaired amount?
Thanks wesbys!
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