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Hi Mr. Mike
I had a question regarding simple groups Chapter 1 of OT notes.in Example 3 when there is a subsequent increase in the consideration to be paid do we remeasure the Goodwill or we simply make the changes to individual statements of the parent without making any changes to the GW
Never been asked that before – just like your other post! Applying common sense, you would not only adjust the parent’s figure for Investment in Subsidiary, you would also need to treat the additional consideration paid on the outome of the contingency as an adjustment to an accounting estimate and accordingly adjust the goodwill.
I think 🙂
Sorry Mr. Mike
I honestly thought about this after i had posted.i am sorry for wasting your time.
Well sir i understand the Cocncept but i still have to see how do the actua mechanics.Looking for a question where i can actually do it so that i can test my understanding
Mr. Mike i recall from my F7 studies that GW is adjusted when conditions come to be known which existed before the Gw measurement and subsequent changes are accounted as per the standard Changes in Accounting estimates.Please can you remember any question which could show me the calculation of this.
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