I would be grateful for your thoughts on this.
We have a client who estimated last year that their goodwill should be written off over 20 years.
The market has changed and they now consider it should be written off over 5 years from the beginning of this accounting period.
I assume that they should amortise one fifth of the b/f book value this year and there would be no PYA as it is a change of an estimate.
Will FRS 102 allow them to continue on that basis for the December 2015 accounts - writing off the balance over the 4 years to 31 December 2018?
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Goodwill write off
Read a good quote from Sir David Tweedie when questioned by an American politician about writing off goodwill. He said that in the UK they have brands older than America and, " personally I'd write off America before I'd ever write off Johnnie Walker Black Label"