Page 316 - F1 Integrated Workbook STUDENT 2018
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Chapter 19
Working 4 – Non-controlling interest
(W4) NCI $
Value of NCI at acquisition (W3) X
NCI % × post-acquisition reserves (W2) X
NCI % = × impairment (W3) only if FV method used (X)
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NCI at the reporting date X
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Key issues
If goodwill has been accounted for using the proportion of net assets
method, then any impairment is borne by the parent only.
If goodwill has been accounted for using the fair value method, any
impairment of goodwill is borne by the parent and subsidiary.
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