When Taylor Ltd acquired the shares of Swift Ltd$,$ one of the assets in the statement of financial position of Swift Ltd was $$20000$ goodwill, which had been recognised by Swift Ltd upon its acquisition of a business from Gammon Ltd$.$ Having prepared the acquisition analysis as part of the process of preparing the consolidated financial statements for Taylor Ltd$,$ the group accountant has asked for your opinion.

REQUIRED: Provide advice on the following issues:

How does the goodwill previously recorded by the subsidiary affect the accounting for the group$$s goodwill?

If$,$ in subsequent years, goodwill is impaired, for example by $$5000,$ should the impairment loss be recognised in the records of Taylor Ltd or as a consolidation adjustment?