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Chapter 20

Example 18.2 cont'd

(W4) Annual forex gain or loss on goodwill
$
Goodwill at CR ((5,200 – 800 = 4,400)/2) 2,200
Goodwill at OR (5,200/3) 1,733
Impairment at AR (800/2.5) (320)
–––––
1,413 (1,413)
–––––
Annual foreign currency gain on goodwill 787

(W5) Impairment

Impairment of €800 would be translated at the average rate of 2.5 for inclusion
in the group CSOPLOCI. €800/2.5 = $320. As the fair value method was used,
the impairment was split between the parent and the NCI.

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