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Dear John and team, please could you confirm whether goodwill is considered an intangible asset under IAS 38. According to the information on iasplus.com goodwill is outside the scope of IAS38 and dealt with separately. Is that correct?
If an exam(or real life) requires us to deal with intangible assets such as, computer software and goodwill, would these be shown as separate line items on the balance sheet? For example:
Intangible assets x
Goodwill xOr would the two be grouped together?
A big thank you for all the help you are offering the student accounting community, especially us visual learners.
Sarah:)
Purchased goodwill is an intangible asset (not goodwill that is internally created – that must not appear in the financial statements). The only real relevance for F3 is goodwill that occurs in the consolidated financial statements, and is all explained in the lectures on consolidations.
All intangible assets would be grouped together, although again in F3 it is only really goodwill arising on consolidation that is likely to be asked.
Also, appreciate that because of the nature of the exam you cannot be asked to prepare full financial statements – you can only be asked to calculate the figures for specific items on the statements.
Thanks a lot for your final comment 🙂
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