Online from: 2005
Subject Area: Accounting and Finance
|Title:||Calculating non-controlling interest in the presence of goodwill impairment|
|Author(s):||Grant Samkin, (Department of Accounting, University of Waikato, Hamilton, New Zealand), Craig Deegan, (School of Accounting and Law, RMIT University, Melbourne, Australia)|
|Citation:||Grant Samkin, Craig Deegan, (2010) "Calculating non-controlling interest in the presence of goodwill impairment", Accounting Research Journal, Vol. 23 Iss: 2, pp.213 - 233|
|Keywords:||Financial management, Interest, Share values|
|Article type:||Technical paper|
|DOI:||10.1108/10309611011073278 (Permanent URL)|
|Publisher:||Emerald Group Publishing Limited|
Purpose – The primary aim of this paper is to illustrate how goodwill impairment loss should be accounted for when measuring non-controlling interest in subsidiaries.
Design/methodology/approach – The paper uses two scenarios to illustrate how non-controlling interest in subsidiaries should be measured in the presence of goodwill impairment loss.
Findings – The way the management of a reporting entity values the non-controlling interest in a subsidiary will result in different amounts being disclosed in financial statements for non-controlling interest in earnings, non-controlling interest, retained earnings and total equity.
Research limitations/implications – The paper uses two scenarios to illustrate a simple consolidation with a parent entity, a subsidiary and a sub-subsidiary.
Practical implications – Practical guidance on how goodwill impairment losses under International Accounting Standard 36
Originality/value – The paper corrects any misunderstanding that may exist on the impact goodwill impairment losses have on closing equity when non-controlling interest is calculated under the different methods of valuing non-controlling interest.
Existing customers: login
to access this document
Downloadable; Printable; Owned
HTML, PDF (4542kb)
Due to our platform migration, pay-per-view is temporarily unavailable.
To purchase this item please login or register.
Complete and print this form to request this document from your librarian