A Ltd Acquires 60% of B Ltd in 20X5

Multiple Choice

A Ltd acquires 60% of B Ltd in 20X5.B Ltd has held a 70% interest in C Ltd since 20X0.In 20X4 the B group recorded $20 000 of consolidation goodwill impairment expense in respect of the C Ltd acquisition.Which of the following statements is true?

A) $12 000 of the B group impairment expense effectively disappears in the A group consolidation
B) The A group will recognise $20 000 of impairment expense
C) NCI of B group will not be assigned any impairment expense
D) None of the above is true