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
The maturity date of a note receivable 1. Is the day of the credit sale 2. Is the day the note was signed 3. Is the day the note is due to be paid 4. Is the date of the first payme

#qUsing these data from the comparative balance sheet of Junior Company, perform horizontal analysis. JUNIOR COMPANY

In May of 2010 a calendar year taxpayer, placed in service $2,137,000 of USED 15-year recovery property. The taxpayer has taxable income of $1,175,000 before the cost recover

Return on Investment (ROI) - Ratio measure of the profits achieved by a firm by its fundamental operations. An indicator of management's general efficiency andeffectiveness. The si

The excessive frequency of compounding is generally continuous compounding where the interest is compounded immediately. The data for continuous compounding for one year is e APR

The market value of a bond is equal to: The present value of all future cash payments provided by a bond The present value of all future interest payments provided by a bond The pr

PROOF OF DEBTS The following rules apply as to the proving of debts: 1) A creditor has no right to vote or receive dividends until his debt is proved to the satisfaction of th

WILLS A will is the legal declaration by a person of his wishes or intentions regarding the disposition of his property after his death, duly made and executed according to the p

What is the function of bill receivable? What is the meaning of bill receivable?