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Dear Mike,
I faced question please help
Company A and company B . Company A acquired all company B by giving Shareholders of company B Shares in Company A . So no company B any more it has been closed.
The value of share which was given to company B shareholders are more than the fair value of net assets of company B .
This difference between value of share which was given and the fair value of net assets of company B how can i recognise it? is it Goodwill? If its goodwill how can i make test of impairment of Goodwill if the company B is not exist?
Thanks“So no company B any more it has been closed.”
Why do you suppose that Company B no longer exists? Are you sure that Company A has liquidated the Company B?
It sounds unlikely to me
If goodwill arose on the acquisition of Company B and Company A has now closed Company B (unlikely!) then any goodwill that did arise is now expensed in Company A’s financial statements
OK?
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