Negative Goodwill
I am just looking for confirmation of my proposed treatment of Negative Goodwill on the purchase of a bargain company that was making big losses.
I propose to credit it to unrealised reserves and then to transfer it to realised reserves at the same rate as the assets that gave rise to the negative goodwill are depreciated. I believe that this is in line with FRS10, I am correct in my understanding?



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