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Stephen Widberg.
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james8500
- Topics: 48
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Hi,
I do not understand why goodwill is re-translated at every reporting date. Goodwill only exists in the parents FS, therefore once calculated and translated into the parents functional currency at acquisition date- it remains in that currency?
Thanks
Stephen Widberg
- Topics: 10
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It only exists in the GROUP accounts (not the parent accounts).
Until 20 years ago, retranslation was not required. But, sometime around the millenium, they changed the rule.
Logic – if you buy Disney based in the US, the goodwill is also in the US – that’s where Mickey Mouse lives – so we have to retranslate the goodwill.
james8500
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