rohit agarwal (article assistant) (47 Points)
13 May 2008can any one reply
1. the accounting treatment of goodwill of company.
2. whether it is necessary to write off goodwill if yes then in how meny years and what kind of goodwill can be written back.
3. the reserves which can be used to write off goodwill.
Shekar
(CA & LCS )
(1109 Points)
Replied 14 May 2008
Hi Rohit..
First of all..Goodwill is not a loss to be written off...Its is an intangible asset to a Firm..it is shown under Fixed asset in balance sheet..Its is revalued during admission or retirement of partner so to decide as to cash to be brought in or withdrawn by incoming or outgoing partner..
Goodwill can be written off only to the extent of capital reserve (i.e. Purchase price paid to acquire is less than assets valued) arising during Amalgamation..
CAclubindia
