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Do you own any shares? Let’s assume you do and John Moffat Plc comes along and offers to buy your shares in Gromit Plc. John Moffat Plc will give you 3 shares in JM Plc for every 2 shares you hold in Gromit Plc. The fair value of a JM Plc share is $3.22 so the is a premium on each of the shares that JM Plc is issuing to you and thousands of other Gromit shareholders.
Now ask yourself this. Is John Moffat’s share premium your goodwill? Do you even keep accounting records? You’re just an ordinary, simple (no offence) shareholder.
If you were a company, then the sale of your investment in Gromit plc to John Moffat Plc would result in (hopefully) a profit on disposal for you
Where did “goodwill” come into it?
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