Commentary

D1.624 Intangible credits—negative goodwill

Corporate tax
Corporate tax | Commentary

D1.624 Intangible credits—negative goodwill

Corporate tax | Commentary

D1.624 Intangible credits—negative goodwill

Negative goodwill can be recognised where the fair value of assets and liabilities acquired when purchasing a business exceeds the price paid for the business. The accounting treatment of negative goodwill depends on which accounting standards are being used by the company (see D1.611). Under FRS 102 and FRS 105 negative goodwill is recognised on the balance sheet and released to profit and loss on the same basis as any non-monetary assets acquired in the purchase of the business. Under international standards any negative goodwill is immediately credited to profit and loss.

If, on the acquisition of

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial