Can the investment get impaired while purchased goodwill thereof remains unimpaired?

Question

Investment in subsidiary                                                                          CU1500
Provision for impairment at beginning of the year for the Investment     CU 800
Unimpaired Goodwill in the Group  at beginning of the year                   CU 600 (part had been impaired in early years)

*** assets of the subsidiary at the year end                                           (CU 200)Negative
Holding percentage by the Parent                                                           60% (of total issued shares)
Total No. of shares issued by subsidiary                                                 115,000,000 shares
Value per subsidiary share based on Recoverable Value                        CU 7

How to compute impairment of:
- investment in separate financial statements and
- goodwill in group financial statements?

Answer 1

ACCORDING TO PROVISIONS OF IFRS, IF CASH GENERATING UNIT(GROUP OF ASSETS CAPABLE OF GENERATING INCOME INDEPENDENTLY) CONTAINS AND IMPAIRS DURING THE YEAR, THEN THE IMPAIRMENT SHOULD BE FIRSTLY CHARGED TO GOODWILL AND IF THERE IMPAIRMENT LOSS REMAIN SHOULD BE DISTRIBUTED ON REMAINING ASSETS ON PRO RATA BASIS.

IN CONSOLIDATION WORKING, WE WOULD CALCULATE WORKING OF IMPAIRMENT ON EVERY SINGLE SUBSIDIARY AND SHALL APPLY THE PROVISION OF IFRS REGARDING IMPAIRMENT AND AFTER THEN WE WOULD SHOW *** REMAINING AMOUNT OF GOODWILL IN BALANCE SHEET