Goodwill Calculation for consolidationForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Goodwill Calculation for consolidationThis topic has 3 replies, 2 voices, and was last updated 3 years ago by Stephen Widberg.Viewing 4 posts - 1 through 4 (of 4 total)AuthorPosts December 31, 2021 at 7:03 am #645108 aadil1234MemberTopics: 75Replies: 104☆☆Sir in goodwill if transaction cost is given, will we add that transaction cost in consideration paid or cost of investment while calculating goodwill?? Sir plz explain a bit. December 31, 2021 at 10:25 am #645113 Stephen WidbergKeymasterTopics: 15Replies: 3390☆☆☆☆☆No no no 🙂Transaction costs must be expensed in the parent’s P&L.If you pay $1 for a (bad) company and you have to pay transaction costs of $40,000:1. Cost of investment is $1 2. Consideration for goodwill calculation is $1This rule is set out in IFRS 3. Out of interest, other accounting systems would not expense transaction costs December 31, 2021 at 10:37 am #645114 aadil1234MemberTopics: 75Replies: 104☆☆Ok sir thanks alot 🙂 January 1, 2022 at 10:54 am #645161 Stephen WidbergKeymasterTopics: 15Replies: 3390☆☆☆☆☆🙂AuthorPostsViewing 4 posts - 1 through 4 (of 4 total)The topic ‘Goodwill Calculation for consolidation’ is closed to new replies.