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On the acquisition date, the retained earnings of X Ltd stood at $ 110,000 and share capital was $ 20,000. Y Ltd had developed a brand which has not been recognized in its financial statements. The board members of X Ltd are of the opinion that the brand, which has a fair value of $175,000 and a remaining term of two years to go as from the date of acquisition, should be accounted. The carrying value of Furniture and Fittings was in excess by $ 160,000 on the acquisition date. Furniture and Fittings had a lifetime of four years at the acquisition date. Included within the intangible assets of Y Ltd (at the acquisition and reporting date) is goodwill of $ 30,500 that arose on the purchase of the trade and assets of a sole-trader business.
Should we account for the goodwill please? and if yes which workings?
Do we have to less in w2 under reporting and acquisition date??
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