Consolidation and Goodwill Flashcards
1
Q
how to calculate goodwill impairment loss?
A
goodwill impairment loss occurs when carrying value of the reporting unit exceeds fair value of the reporting unit, and it’s capped by the goodwill balance by the end of the year.
2
Q
How to eliminate equity of a subsidiary when it’s wholly or partially owned by a parent?
A
the entire equity section of the subsidiary will be eliminated.
