How do recognize goodwill impairment double entry for two method in consolidation?

Equity Method

 

Investment amount exceeds the fair value, goodwill is impaired, and a loss must be calculated record is as follows.(Profit should be record in other way around)

[Debit]. Goodwill Impairment Loss [Credit]. Investment in Company Subsidiary

 

Proportionate method.

A Limited acquires an 80% interest in the equity shares of B Limited for consideration of $500. The fair value of the net assets of B Limited at that date is $400. The fair value of the NCI at that date (ie the fair value of High’s shares not acquired by Borough) is $100.The proportionate goodwill arising is calculated by matching the consideration that the parent has given, with the interest that the parent acquires in the net assets of the subsidiary, to give the goodwill of the subsidiary that is attributable to the parent.

      Parent’s cost of investment at thefair value of consideration given   $500   Less the parent’s share of the fairvalue of the net assets of thesubsidiary acquired (80% x $400) ($320)   Goodwill attributable to the parent   $180  

The gross goodwill arising is calculated by matching the fair value of the whole business with the whole fair value of the net assets of the subsidiary to give the whole goodwill of the subsidiary, attributable to both the parent and to the NCI.

      Parent’s cost of investment at thefair value of consideration given   $500   Fair value of the NCI   $100   Less the fair value of the netassets of the subsidiary acquired (100% x $400) ($400)   Gross goodwill   $200  

 

Given a gross goodwill of $200 and a goodwill attributable to the parent of $180, the goodwill attributable to the NCI is the difference of $20.

Investments in B           (DR)         180

Goodwill                        (CR)         180

 

Investment in B (NCI)    (DR)          20

Goodwill                         (CR)          20