Hi,
Please advise,
A private company acquired a sole proprietor concern and paid Rs. 3 crores also as goodwill (Paid in Cash) to the sole proprietor. What is the accounting treatment for this. Should we apply AS 14 as purchased goodwill and amortise it over a period of 5 years or AS 26 is applicable? Can we consider it as intangible asset and provide 25% depreciation on it. (Concern acquired was hospital) can we treat such goodwill as intellectual property rights?
Awaiting reply,
CAclubindia
