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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › G/W after revaluation of fixed assets
Dear Sir, can you please help me with a question?
Does the value of G/W change if the fixed assets are revalued (upwards)? I mean, G/W was first calculated in 2014 and in 2016 the fixed assets were revalued, thus impacting the Revaluation reserve.
Thank you very much!
Hi,
No, once goodwill has been calculated it will not increase in value as it is only calculated once, which is at the acquisition date. It can only suffer a decrease in value as a result of an impairment.
Thanks