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Pre-acqusition dividend and goodwill impairment

Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › Pre-acqusition dividend and goodwill impairment

  • This topic has 2 replies, 3 voices, and was last updated 15 years ago by Anonymous.
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  • June 3, 2010 at 1:03 pm #44378
    Anonymous
    Inactive
    • Topics: 7
    • Replies: 1
    • ☆

    Hi,
    1.What is the accounting treatment of pre-acquisition dividend?Should the cost of investment be reduced or the dividend be recognised as an income?
    2. Impairment loss of goodwill can be reversed ?

    Thank you very much!

    June 14, 2010 at 4:06 pm #61987
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 2
    • ☆

    Impairment loss on goodwill CANNOT be reversed!!!

    June 14, 2010 at 4:23 pm #61988
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 1
    • ☆

    Impairment on goodwill cannot be reversed only when a disposal takes
    place.

    Dividends is used to reduce the cost of the investment in the sub.

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