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FPR, a company based in F-land, acquired 75% of the ordinary shares of another company, GZX, many years ago. FPR elected to measure non-controlling interests
FPR, a company based in F-land, acquired 75% of the ordinary shares of another company, GZX, many years ago. FPR elected to measure non-controlling interests (NCI) in GZX at fair value at acquisition, and presents goodwill impairment as an administrative expense. At 31 July 20X3, an impairment loss of F$10,000 is deducted from the carrying amount of GZX's goodwill. What is the adjustment required for this impairment loss in FPR's consolidated statement of profit or loss for the year ended 31 July 20X3? Solution A.Add F$10,000 to group administrative expenses, and deduct F$2,500 from profit attributable to NCI. B.Deduct F$10,000 from group administrative expenses, and deduct F$2,500 from profit attributable to NCI. C.Add F$10,000 to group administrative expenses, and make no adjustment to profit attributable to NCI. D.Deduct F$10,000 from group administrative expenses, and make no adjustment to profit attributable to NCI
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