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Goodwill impairment in consolidating journal entries for S Ltd

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Cost of shares in S Ltd 2,100,000
Group's interest in the net assets of S Ltd
Share captial 2,000,000
Reserves 1,000,000
Net assets 3,000,000
60% thereof (1,800,000)
Goodwill on acquisition 300,000

Monority interest ($3,000,000 x 40%) (1,200,000)

Prepare the related consolidated journal entries if 30% of the goodwill is to be written off as impairment loss?

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The expert examines Goodwill impairment in consolidating journal entries for S Ltd.

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ANSWERS

DR: Share capital 2,000,000
DR: Reserves 1,000,000
CR: Investment in S. ...

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