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Goodwill

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Goodwill

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by P2-D2.
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  • Author
    Posts
  • April 24, 2016 at 3:51 am #312426
    nari
    Member
    • Topics: 259
    • Replies: 175
    • ☆☆☆

    Hello Mike

    As per IAS 36 Impairment of Asset, the Reversal of an impairment loss for goodwill is prohibited. My question is, if the company’s reputation and brand name “picks up” in the future, how is this to be recorded?

    April 26, 2016 at 9:53 am #312705
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7228
    • ☆☆☆☆☆

    Hi,

    We don’t record anything with regards to the improvement in the company’s reputation or brand name. It is considered an internally generated intangible under IAS 38 and so cannot be recognised as the measurement is not reliable enough.

    Thanks

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