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Calculating non‐controlling interest in the presence of goodwill impairment


Samkin, G and Deegan, C, Calculating non‐controlling interest in the presence of goodwill impairment, Accounting Research Journal, 23, (2) pp. 213-233. ISSN 1030-9616 (2010) [Refereed Article]

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Copyright Statement

Copyright 2010, Emerald Group Publishing Limited

DOI: doi:10.1108/10309611011073278



The primary aim of this paper is to illustrate how goodwill impairment loss should be accounted for when measuring non‐controlling interest in subsidiaries.


The paper uses two scenarios to illustrate how non‐controlling interest in subsidiaries should be measured in the presence of goodwill impairment loss.


The way the management of a reporting entity values the non‐controlling interest in a subsidiary will result in different amounts being disclosed in financial statements for non‐controlling interest in earnings, non‐controlling interest, retained earnings and total equity.

Research limitations/implications

The paper uses two scenarios to illustrate a simple consolidation with a parent entity, a subsidiary and a sub‐subsidiary.

Practical implications

Practical guidance on how goodwill impairment losses under International Accounting Standard 36 Impairment of Assets when measuring non‐controlling interest under International Financial Reporting Standard 3 Business Combination, is provided.


The paper corrects any misunderstanding that may exist on the impact goodwill impairment losses have on closing equity when non‐controlling interest is calculated under the different methods of valuing non‐controlling interest.

Item Details

Item Type:Refereed Article
Keywords:interest, share value, financial management
Research Division:Commerce, Management, Tourism and Services
Research Group:Accounting, auditing and accountability
Research Field:Accounting theory and standards
Objective Division:Expanding Knowledge
Objective Group:Expanding knowledge
Objective Field:Expanding knowledge in commerce, management, tourism and services
UTAS Author:Deegan, C (Mr Craig Deegan)
ID Code:138439
Year Published:2010
Deposited By:Accounting and Corporate Governance
Deposited On:2020-04-08
Last Modified:2020-07-31

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