Recognition of goodwill on acquisition of subsidiary

Topics related to universal accounting principles and best practices, local GAAP, audit, laws and regulations affecting financial reporting, and other financial reporting topics.
This is also the appropriate forum for beginners to ask any questions, even if they pertain to IFRS.
Post Reply
Yannick
Posts: 1
Joined: 14 Aug 2019, 12:43

Recognition of goodwill on acquisition of subsidiary

Post by Yannick »

Hi there,

I would like to know whether goodwill on acquisition of a subsidiary is to be recognised even though such goodwill is immaterial to either the parent company or the group as a whole. :roll:
User avatar
Marek Muc
Site Admin
Posts: 3228
Joined: 15 Oct 2018, 17:21
Contact:

Re: Recognition of goodwill on acquisition of subsidiary

Post by Marek Muc »

Hi, no :)

But you need to recognise something so that debits and credits will be equal. For example, you can recognise some kind of intangible asset (e.g. customer base or brand) and amortise it shortly after the acquisition date
Post Reply