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Negative goodwill!

This topic has 2 replies, 3 voices, and was last updated 10 years ago by MikeLittle.

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April 4, 2014 at 5:58 pm #164411
Leong
Member
- Topics: 4
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How does negative goodwill affect assets in the consolidated SOFP? I understand the logic of recognizing it as an extraordinary gain in SOPL. What is the corresponding double entry to it? Please help!
April 7, 2014 at 2:22 am #164573
smokes2k6
Participant
- Topics: 0
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It doesn’t necessarily affects the assets I think. The bargain purchase amount would be added into the consolidated retained earnings.
April 15, 2014 at 7:21 pm #165378
MikeLittle
Keymaster
- Topics: 27
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The corresponding entry is to debit the goodwill account, sometimes referred to as “Cost of Control” account
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