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mrjonbain.
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deekshabee
- Topics: 24
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Why is negative goodwill credited to the statement of profit & loss?
Someone, please explain in simple words.
mrjonbain
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It’s basically because the parent has effectively obtained something for less than its book value ( a bargain purchase) and so this gain is recognised as profit in income statement. Hope this helps.
deekshabee
- Topics: 24
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okayyyy, thank you.
mrjonbain
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You are welcome.
deekshabee
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