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Hi there,
I have just done a question and it said that as part of the purchase consideration land was transferred from the sub to the parent. I thought this didn’t go into the goodwill calculations as purchase price / consideration as although the land transferred is between entities upon consolidation it will be one entity anyway. Is this not the case, do we include land or any PPE into the calculations?Thanks
Are you sure that the land was not transferred to the seller of the subsidiary? Only then would goodwill be impacted.
Inter-company transfers would have no impact on goodwill.
I’m not too sure, let me see if I can dig out the question and re look at it. If I have any more questions on this I will respond on this thread. Thank you
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