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Under Ind AS 28, goodwill arising on acquisition of an associate or joint venture is:
ASubsumed into goodwill of the parent on consolidation
BIncluded in the carrying amount of the net investment; NOT tested separately for impairment — the entire investment is tested as a single asset
CRecognised separately and tested for impairment annually
DRecognised separately and amortised over 10 years
Answer & Solution
Correct answer: B. Included in the carrying amount of the net investment; NOT tested separately for impairment — the entire investment is tested as a single asset
Equity-method goodwill is embedded in the carrying amount of the investment. Any impairment is assessed against the whole investment as a single asset and is not allocated to embedded goodwill.
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