Goodwill issue

I have been out of practice for 5 years and newly returned, and yes I do need a little training, but I don't think any training would help with my specific question, so I am looking for some help here!

I have a client who has started a new Ltd Company, he never traded as a sole trader then incorporated for this company.

He has another Accountant for his other older company who advised that he could show Goodwill in the new company accounts for his knowledge that he has brought to the company. I think the Accountants said they would just make up a figure and see if there is any come back when they put it in.

I do not like the sound of this, as I do not know technically if correct to show knowledge as Goodwill for starters? Then there is valuing the knowledge? The standards  don't seem to cover this issue and I don't remember this situ ever coming up when I was studying my exams...a long time ago...but I may be wrong.

Can anyone give me some kind advice (not to go on a training course please...:)

Many Thanks

 

Comments
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Goodwill on Incoropration

david5541 |

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blok |
blok's picture

Internally generated goodwill

Steve Collings |
Steve Collings's picture

Is it really internally

LeighM |

Know-how

Steve Collings |
Steve Collings's picture

That's absolutely brilliant

LeighM |