AASB 136 Impairment of Assets AppC-C1-C9: Partly owned units with goodwill: where non-controlling interests are measured at their proportionate share of net assets, gross up the unit's goodwill for the goodwill attributable to them before comparing with recoverable amount, allocate any loss between parent and non-controlling interests in the profit-sharing proportions, and recognise only the parent's share of a loss on unrecognised goodwill

What does AppC-C1-C9 require?

Appendix C applies the unit test where a partly owned subsidiary carries goodwill. When the non-controlling interest was measured at acquisition as a proportionate share of identifiable net assets rather than at fair value, the goodwill attributable to that interest is in the unit's recoverable amount but not on the parent's consolidated balance sheet, so the goodwill carrying amount is notionally grossed up to include it before the comparison with recoverable amount. Any loss is allocated first to goodwill and then to other assets pro rata as paragraph 104 requires. Where the partly owned subsidiary or part of it is itself a unit, the loss is split between parent and non-controlling interests in the same proportions as profit or loss; where it forms part of a larger unit, goodwill losses are first apportioned between the parts with and without non-controlling interests on the relative carrying amounts of their goodwill, identifiable asset losses on the relative net identifiable assets, and then allocated to the assets of each part pro rata. The portion of a loss attributable to non-controlling interests that relates to goodwill not recognised in the consolidated statements is not booked as a goodwill impairment; only the loss on the parent's recognised goodwill is.