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IFRS 3 Business Combination

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS 3 Business Combination

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • April 22, 2019 at 2:13 pm #513740
    gangsta1
    Member
    • Topics: 75
    • Replies: 10
    • ☆☆

    Goodwill arising from a business combination, i know this is subject to impairment test annually and any evidence of impairment will be accounted for accordingly.

    My question though sir, is there ever a time when goodwill will be disposed of/ removed from the balance sheet entirely?

    April 22, 2019 at 8:24 pm #513793
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7217
    • ☆☆☆☆☆

    Hi,

    Yes, goodwill can be fully impaired to nil so will no longer appear on the balance sheet. It also disappears when the subsidiary is sold.

    Thanks

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