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Hi sir ,
Could u explain the treatements of goodwill from view of theses standards/how should be recognized
At date of transaction and date or reporting:1) bus combination: when acquired a sib which got goodwill
2)effects of changes in exchange rate
3) when inernally generated goodwill
I hope u clarify the differences of treatements so clear my confusion
Thanks v much
Hi,
1) The goodwill of the subsidiary is not recognised and is removed from the net assets at the acquisition date.
2) The goodwill is calculated in the functional currency of the subsidiary and translated each year at the closing rate with exchange differences being recognised through OCI.
3) Internally generated goodwill is not capitalised.
Hope that helps.
Thanks
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