Goodwill in liabilities side
This query is : Resolved
E.K.Raghavendra
(Querist)
12 June 2008
Goodwill will be shown in asset side, then what is its effect in liabilities side?
19 June 2008
There are two types of goodwill
Self Generated goodwill - it cannot be shown in the balancesheet as there is no cost for it
Acquired goodwill can be shown in the asset side.....WHEN GOODWILL IS ACQUIRED EQUIVALENT CASH/BANK WOULD HAVE GONE OUT.......
SO it automatically offsets...
POR is a capital loss to be adjusted with Securities Premium account and if there is no balance in Securities premium account, it can be adjusted in P & L Balance.
with regards
PC
profvpp@gmail.com
www.bharadwajinstitute.com
Self Generated goodwill - it cannot be shown in the balancesheet as there is no cost for it
Acquired goodwill can be shown in the asset side.....WHEN GOODWILL IS ACQUIRED EQUIVALENT CASH/BANK WOULD HAVE GONE OUT.......
SO it automatically offsets...
POR is a capital loss to be adjusted with Securities Premium account and if there is no balance in Securities premium account, it can be adjusted in P & L Balance.
with regards
PC
profvpp@gmail.com
www.bharadwajinstitute.com
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