30 December 2010
How do we treat the Goodwill which arises on acquistion of a company(slump sale method). Higher amount is paid as compared to the net assets taken over.
Premium is paid mainly to acquire the customer lists , commercial rights etc..
31 December 2010
The amount of Premium paid is only GOOD WILL and you can create a Good Will A/c in Fixed Assets. You can keep the a/c forever or you can amorisize over a period of say 7 or 10 years. But you can not claim IT exemption on such amortization of the good will.
CAclubindia
