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Goodwill where no consideration paid and fairvalue of net assets is in negative

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Goodwill where no consideration paid and fairvalue of net assets is in negative

  • This topic has 3 replies, 2 voices, and was last updated 2 years ago by AvatarStephen Widberg.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • June 11, 2023 at 9:50 am #686772
    Avatarzeeshanqureshi
    Participant
    • Topics: 1
    • Replies: 10
    • ☆

    I have following 2 questions:

    1) is the goodwill shown in both separate as well as consolidated financial statements or only in consolidated financial statements i.e. in separate can it be shown as loss on acquisition instead of goodwill?

    2) if the parent has acquired subsidiary with negative net assets and no consideration paid. Does this create a goodwill as well?

    Thankyou.

    June 11, 2023 at 2:26 pm #686785
    AvatarStephen Widberg
    Keymaster
    • Topics: 17
    • Replies: 3452
    • ☆☆☆☆☆

    1. Consolidated accounts only.

    2. Yes.

    June 12, 2023 at 10:56 am #686876
    Avatarzeeshanqureshi
    Participant
    • Topics: 1
    • Replies: 10
    • ☆

    Thanks Stephen!

    June 13, 2023 at 7:08 am #686952
    AvatarStephen Widberg
    Keymaster
    • Topics: 17
    • Replies: 3452
    • ☆☆☆☆☆

    🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Goodwill where no consideration paid and fairvalue of net assets is in negative’ is closed to new replies.

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