Sir on page 171 of bpp text in the question part b they have written that we will also debit goodwill and credit p and l by 0.9m. But i dont understand y.
I’ve not got the textbook to hand but if the deferred tax asset cannot be recognised on acquisition then it will be removed, hence the credit, and the other side taken to goodwill.
I’ll double check when I next have the textbook by my side.