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Hi Mike,
I’m sorry you find this a stupid question. But I’m getting worried on how to show Purp/depn and goodwill impairment loss in Soci
Will they always be added/deducted?
Pups, extra depreciation and goodwill impairments will always be shown in SoCI and will always be shown as expenses. The pup will be ADDED to cost of sales. The depreciation adjustment MAY be included in cost of sales – depends what Graham tells you to do, and the goodwill impairment – again, maybe in cost of sales or anywhere else he may tell you. If he doesn’t tell you where to include it, I would be inclined to show it separately
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