Fair value adjustment

Within the first 12 months after an acquisition, the acquiring company shall review the fair values of the net assets acquired and make such adjustments as may be necessary to arrive at a more realistic goodwill figure. The software had been included but, shortly after the acquisition and certainly within the first 12 months, it was decided that the fair value was zero With the benefit of hindsight we can include the software in the working W1 at its fair value of zero OK?

You mean the value originally paid for goodwill at the date of acquisition is changed at the year end?

No, I mean the fair value of the subsidiary net assets at date of acquisition is reviewed How can you change the amount paid?

When the value of the net assets of the sub is reviewed at year end, then the value of goodwill changes as compared to what it was at acquisition?

Yes, that's correct. But your question suggested that you believed the amount paid changed and that is wrong .... ...."You mean the value originally paid for goodwill at the date of acquisition is changed"