Page 470 - SBR Integrated Workbook STUDENT S18-J19
P. 470
Chapter 25
Example 9
Goodwill impairment
Fair value
$m
Goodwill 6.0
Net assets at reporting date 12.0
–––––
Total carrying amount of assets 18.0
Recoverable amount (15.0)
–––––
Impairment 3.0
–––––
Dr Profit or loss $3m
Cr Goodwill $3m
The impairment is allocated between the group and the NCI in proportion to
their shareholdings. Therefore, the group is allocated $1.8 million and the NCI
is allocated $1.2 million.
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