02 August 2010
If the consideration paid is more than the net assets acquired from the transferor company then the surplus should be debited to the Goodwill account.
02 August 2010
Madam but I'm not talking about the CONSIDERATION. Yes you are right that Excess Purchase consideration will be Dr. to Goodwill A/c in transferee books.
But I'm talking about that thing which is excluded from PC but still Dr. to Goodwill A/c. It's Liquidation Expenses paid by transferee company.
04 August 2010
I gave a cursory glance at AS 14 and didn't find anywhere it being mentioned that the liquidation expense should be given the same treatment as purchase consideration in case of amalgamation.
05 August 2010
Even I saw the AS-14 and didn't find anything but really ma'am I've done this chapter twice and I've no doubt regarding being Liquidation Expenses Dr. to Goodwill A/c.
CAclubindia
