Can goodwill of parent company be set off with capital reserve arising on account of consolidation of subsidiary company... Please clarify
4 Replies
ACCOUNTANT
(Student)
(559 Points)
Replied 12 June 2020
Or it is to be netted and disclosed as notes to consolidated financial statements
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 12 June 2020
Goodwill is an intangible asset.
Acquired goodwill is annually tested for impairment and written off.
Internally generated goodwill is written off.
Bargain purchase- negative goodwill is taken to income statement.
It cannot be setoff with any other head.
Padmanabhan
(Student)
(1321 Points)
Replied 13 June 2020
Goodwill and capital reserve are not like profit and loss
Those two terminology are used to express whether the acquisition of a company is beneficial to the company or not to the shareholder.
So netting off of both goodwill or capital reserve is not allowed by the standard.
Those two terminology are used to express whether the acquisition of a company is beneficial to the company or not to the shareholder.
So netting off of both goodwill or capital reserve is not allowed by the standard.
sabyasachi mukherjee
(27574 Points)
Replied 23 June 2020
Goodwill is an intangible asset.
capital reserves are out of capital profit.
No adjustment allowed.
capital reserves are out of capital profit.
No adjustment allowed.
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