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Good morning,
I’m looking for some practical examples showing the current IFRS treatment of:
– the amortization of goodwill
– the amortization of negative goodwill
Does anyone know any good links?
Thank you,
Kind regards,
NeerajFirst, you’ve posted this on the Ask the Tutor page so then to ask “Does anyone know any good links?” is inappropriate – I object to you inviting others to answer questions addressed to me!
Second, there is NO SUCH CONCEPT of amortising goodwill. It is reviewed annually for any impairment. It is NOT amortised
Third, where on this earth have you heard that negative goodwill is amortised? (Amortised is still the wrong word!). Negative goodwill is not written off over a period of time – it is credited to statement of income in the first financial statements after acquisition of the subsidiary by way of bargain purchase
Ok?
Hello and my apologies, it’s my first time in a long while since I looked into IFRS. I got confused with a different national accounting system where these treatments are permitted.
Secondly, thank you for your answers – in fact I got exactly what I was looking for!
Finally, I’ll take note to post questions in the right place! Thanks again!Cool, no worries :).
Actually, I was reading up, I read that in IFRS for SMEs, you do have amortization of goodwill, but any negative goodwill is still credited through the first set of financial statements.
Reference: https://www.iasplus.com/en/standards/other/ifrs-for-smes
Section 19 – “All goodwill must be amortised. If the entity is unable to estimate useful life, then use 10 years.”Is this still valid?
Thank you!
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