Topic- Goodwill
On date of acquisition, if GBP arises, before transferring it to Capital Reserve, can it be set off from Goodwill already existing in balance sheets of acquirer and acquiree?
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No it can’t be set off from existing goodwill mentioned of the acquirer and we ignore the goodwill of acquire while all calculations.
Then goodwill of both acquirer and acquiree will be shown as it is and GBP will be transferred to capital reserve?
While consolidating acquire goodwill is not shown in consolidated balance sheet and yes GBP will be directly transfer to capital reserve.