Treatment of impairment in consolidation

Treatment of impairment in consolidation

by JOSELINE UMUGWANEZA -
Number of replies: 2

Impairment is decrease in value of intangible asset ,For example when value of goodwill decrease we say that goodwill  is impaired, so in consolidation  we calculate impairment of goodwill, impairment  reduces retained earning(percentage of parent share)  and non controlling interest (percentage related to non controlling interest) under full goodwill method  but under partial goodwill method  impairment  reduces retained earnings only(total value of impairment) . Impairment is an expense of group that is reason why it  reduces retained earnings and non controlling interest. Thanks

In reply to JOSELINE UMUGWANEZA

Re: Treatment of impairment in consolidation

by EMIMA GIRAMATA -
Impairment is decrease value of non current asset only?
In reply to EMIMA GIRAMATA

Re: Treatment of impairment in consolidation

by HITAYEZU Innocent -
I asked all of you to discuss the recoverable amount. through this discussion you are going to know the meaning of impairment. continue participating in this discussion