Asked by Kaitlyn Guevara on Apr 24, 2024
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Where the full goodwill on acquisition is recognised in the consolidated financial statements,any impairment loss will be allocated between parent interest and NCI on the same basis as profit or loss.
Full Goodwill
An accounting method that recognizes goodwill based on the total purchase price of a subsidiary, including both the parent's and minority interest's share.
Impairment Loss
The amount by which the carrying amount of an asset or cash-generating unit exceeds its recoverable amount.
NCI
An alternative term for non-controlling interest, highlighting the equity in a subsidiary not held by the parent company.
- Understand the implications of full goodwill and impairment losses on NCI and parent interest.
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Learning Objectives
- Understand the implications of full goodwill and impairment losses on NCI and parent interest.
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