Under the parent-company extension method,to which company should the impairment of goodwill be attributed?
A)Solely to the parent company
B)Solely to the subsidiary company
C)Allocated between the parent and subsidiary companies
D)No attribution as goodwill is not shown under this method

Question

Quizplus · Accepted Answer

Under the parent-company extension method, the impairment of goodwill is attributed solely to the parent company because the parent company is considered to own the goodwill.

Under the Parent-Company Extension Method,to Which Company Should the Impairment