Goodwill and business combinations - intangible assets, Auditing

Goodwill and Business Combinations - Intangible Assets

Goodwill is the one of most strange of all assets since it cannot be differentiate from the business.  It cannot be sold on it's as asset.  Most difficulty is to ascribe a value to.  So there is no reliable basis for find out the value of this asset. 

The problem along with internally produced goodwill is trying to quantify the asset.  Hence, internally produced goodwill must not be identified as an asset in accounts meant to provide a fair or true view.  Since whether the auditor finds a set of accounts whether internally generated goodwill has been identified as an asset in the balance sheet then, he should be alert such this treatment is against the requirements of IAS and have accordingly qualify his report.

Posted Date: 1/25/2013 2:09:11 AM | Location : United States







Related Discussions:- Goodwill and business combinations - intangible assets, Assignment Help, Ask Question on Goodwill and business combinations - intangible assets, Get Answer, Expert's Help, Goodwill and business combinations - intangible assets Discussions

Write discussion on Goodwill and business combinations - intangible assets
Your posts are moderated
Related Questions
Cash and Window Dressing - Building Society Cash Possibility of misappropriation and error usually accompany the handling of cash. Building societies transactions towards

Audit Approach The auditor: 1) Must get the cooperation of the client, as simply the client can authorise third parties that communicate along with the auditor. 2) Choos

what is the impact of judgemental sampling on the quality of a financial report

what is the role of audit trainee in managing the discrete assignment?

Going Concern Considerations - Audit Process IAS 1 Presentation of Financial Statements knows the going related assumption as one of the fundamental assumptions that underlie

Need for an Audit Whether you take an example for a modern large liability company, such we can clearly differentiate between those who control those funds the providers of fu

Internal Control - Investment Whether a trading concern holds merely a few investments, there is unlikely to be any organized internal control systems particularly for those i

Preferred stock valuation 1. Features of preferred stock (You may review what you've learned about preferred stock from TCA 221): a. Multiple classes in terms of convertibil

The Need for an Audit If you take an example of a modern large liability company, we can clearly distinguish between the providers of funds and those who control those funds. The

Information in the Fixed Assets Register The register can obtain the following information: i. Fixed asset number. ii. The cost and the date of purchase. iii. Descrip