Does anyone know the treatment of goodwill on consolidation under GAAP? FRS 6 seems to suggest that Goodwill should be taken through the Restructuring reserves in balance sheet. In this scenario, I have a debit balance of €400k i.e. Consideration £1.6 Net assets £1.2?
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Not sure what you mean by Restructuring reserves - that's a new one on me. But I think the answer to your question is that you account for goodwill arising on consolidation in the same way that you would account for purchased goodwill in the accounts of a standalone company.
Tickers, you are reading the wrong FRS. FRS6 is for merger accounting not equity consolidations.
Read FRS10 and FRS11 instead.