G/W after revaluation of fixed assets

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March 27, 2017 at 4:19 pm #379373
Irina
Member
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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!
March 30, 2017 at 10:49 pm #379688
P2-D2
Keymaster
- Topics: 4
- Replies: 7232
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
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