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goodwill

This topic has 1 reply, 2 voices, and was last updated 6 years ago by P2-D2.

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October 30, 2018 at 12:32 pm #480219
wingyee
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- Topics: 39
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in the calculation of goodwill,it will include the fair value of net asset.the fair value of net asset include the share caiptal and retained earning also,is that the share premium also part of the fair value of net asset?
October 30, 2018 at 9:13 pm #480282
P2-D2
Keymaster
- Topics: 4
- Replies: 7079
Hi,
Yes. The share premium is part of the equity and so therefore must be included when calculating the net assets at acquisition based upon the accounting equation.
Thanks
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