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Group Question – wrongly calculated goodwill

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Group Question – wrongly calculated goodwill

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.
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  • April 6, 2021 at 8:24 pm #616135
    jareerabedin
    Member
    • Topics: 91
    • Replies: 72
    • ☆☆

    Sir, in group Questions, whenever the directors calculate goodwill inaccurately, by not considering the fv of nci, in the solution, we always debit the wrongly calculated amount of goodwill to profit and loss. I don’t quite understand this, could you kindly help me understand?

    Thank you sir

    April 7, 2021 at 9:21 am #616214
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3427
    • ☆☆☆☆☆

    Every question is different. It is testing your understanding of basic debits and credits. You cannot say it will always be P&L.

    If you are rusty on debits and credits, remember that you can use alternative words like UP or DOWN.

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