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We recently decided to sell one of our divions to a Canadian company since we have decided not to focus on that particular line of business. Negotiations are still ongoing, however it looks like the Canadian Company is willing to pay an additional $1.5 million on top of the fair value of identifiable assets agreed by both of us!
- If this deal does not go through, can we recognise this $1.5 goodwill in our books?
- How should we account for an unrecorded Patent which we will transfer to them?
-In return the Canadian Company will issue some shares as well! This means that we will be shareholders and owenrs of the company, but how do we account for these shares?
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