Goodwill disclosure
This query is : Resolved
CA Muthukumaran
(Querist)
05 August 2016
Friends
One of our client purchased 20% sharesholding in Partnership. The company has paid Rs.10 lacs to purchase shares in the partnership firm and Rs.5 lacs has paid to the retiring partner as Goodwill.
Total investment from the company is Rs.15 lacs.
How to disclose in the financial statement, whether to disclose Goodwill as intangible asset separately in FS or total investment Rs.15 as investment as AS 13.
One of our client purchased 20% sharesholding in Partnership. The company has paid Rs.10 lacs to purchase shares in the partnership firm and Rs.5 lacs has paid to the retiring partner as Goodwill.
Total investment from the company is Rs.15 lacs.
How to disclose in the financial statement, whether to disclose Goodwill as intangible asset separately in FS or total investment Rs.15 as investment as AS 13.
Amol S Joglekar
(Expert)
05 August 2016
Why are referring it as shareholding in firm? By 20%, Do you mean to say 1/5 th share of PROFIT in firm......?????
Anyway.....in the books of company....15L will represent under INVESTMENT.
In the books of Firm.....if goodwill is not appearing before admission of Company.......raise the godwill and credit the same to C's capital account....and then make the entry accordingly.
Anyway.....in the books of company....15L will represent under INVESTMENT.
In the books of Firm.....if goodwill is not appearing before admission of Company.......raise the godwill and credit the same to C's capital account....and then make the entry accordingly.
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