Goodwill-intra company adjustments-group accounts, Financial Accounting

GOODWILL

Previously under IAS 22 on Business combinations, goodwill on consolidation used to be amortized over an estimated period of years. However, IFRS 3 (still on business combinations) prohibits the amortization Goodwill  and instead requires;

a) Positive goodwill to be carried in the accounts at cost and incase the management feels there’s been a loss of value (impairment), then it should be charged as an expense.

For the consolidated balance sheet, the relevant entry is:
      DR.  Group retained profits
            CR.  Cost of control (with the impairment)


b) Negative goodwill should be reported as income immediately.

Relevant entries are;;
DR.  Cost of control
       CR. Group profit and loss/retained profits (with the full negative goodwill)

Posted Date: 12/12/2012 2:47:55 AM | Location : United States







Related Discussions:- Goodwill-intra company adjustments-group accounts, Assignment Help, Ask Question on Goodwill-intra company adjustments-group accounts, Get Answer, Expert's Help, Goodwill-intra company adjustments-group accounts Discussions

Write discussion on Goodwill-intra company adjustments-group accounts
Your posts are moderated
Related Questions
a. Conversion cost was 140,000 and was four times the prime cost b. Direct materials used in production equaled 5,000 c. Cost of goods manufactured was 154,000 d. Ending work in pr


Financial ratio analysis Financial ratio analysis is a statistical tool that measures the relationship between two financial figures. It invol

Property, plant and equipment Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4

Q. What is Taxation and capital allowances? The suppositions made regarding taxation should be investigated. The tax rate has-been supposed to be constant when there may be dif

Wendy is evaluating a capital budgeting project that should last for 4 years. The project requires $ 800,000 of equipment. She is unsure what depreciation method to use in her anal

#questiondd

Peer Review - Process by which an accounting firm's practice is evaluated for compliance with professional standards. Objective is achieved through the performance of an independen

In this method the minimum and maximum level for all items of inventory are fixed. These levels function as an origin for initiating action so that the quantity of all items is con

Assure  you have just  started a Mobile store. You sell mobile sets and  currencies of Airtel, Vodaphone, Reliance and BSNL.  Take five transactions  and prepare a position stateme