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18.A group accounting - Coggle Diagram
18.A group accounting
Goodwill
Shares
Upfront: FV of shares @ acq
Deferred: FV of shares @ acq
IF contingent liability: FV (pay $0 or pay $200k)
Cash
Upfront: Cash paid
Deferred: PV ($200,000*1/1.05^3)
Always measured at FV
Impairment of goodwill
It is tested annually for impairment as part of CGU (something that generates cash)
Carrying value VS recoverable amount (HIGHER of value in use and FV-CTS)
On its own cannot be tested for impairments (does not generate cash)
Goodwill will be impaired first & then Net assets of S
Separate FS: non-consolidated
using equity method
IFRS9 Financial Instruments: FVPL or FVOCI
At cost
Measure investments in S, joint venture or associate:
Impairment
Proportionate: DR W5 RE & CR W3 Goodwill
FV : DR W5 RE, DR W4 NCI & CR W3 Goodwill
Fair to share (expense P & NCI)
Measurement period
Restate goodwill @ acq retrospectively
Otherwise you'll need to account for this moving forward.
Ends 12 months after acquisition date.
Joint arrangements
Joint operation: brand new entity - share of net assets
Two or more parties have joint control: unanimous consent & collectively control)
Joint venture: brand new project - equity account(Associate)
NCI
FV: full goodwill (P + NCI)
Proportionate: P only (share of net assets method)
Professional fees: Expensed to SPL