Group Question – wrongly calculated goodwill

This topic has 1 reply, 2 voices, and was last updated 5 years ago by Stephen Widberg.

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April 6, 2021 at 8:24 pm #616135
jareerabedin
Member
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Sir, in group Questions, whenever the directors calculate goodwill inaccurately, by not considering the fv of nci, in the solution, we always debit the wrongly calculated amount of goodwill to profit and loss. I don’t quite understand this, could you kindly help me understand?
Thank you sir
April 7, 2021 at 9:21 am #616214
Stephen Widberg
Keymaster
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Every question is different. It is testing your understanding of basic debits and credits. You cannot say it will always be P&L.
If you are rusty on debits and credits, remember that you can use alternative words like UP or DOWN.
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