Amortisation of goodwill

goodwill on consolidation

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Company A purchased company B 15 years ago for £5m. In company A this has always been the cost of investment.

We now need to consolidate under acquistion accounting for the first time.  Goodwill arises on consolidation of £1m. Had we consolidated from the start, this would have been written off now.

Do we effectively assume that we have consolidated from the beginning and therefore we have no charge this year and the amount is therefore debited to reserves b/fwd? Thanks

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By johngroganjga
15th Sep 2016 10:47

Yes I think you must assume that you have been consolidating from day one.

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By johngroganjga
15th Sep 2016 16:35

.

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