“On 31 December 2018, NinMount paid £320 million to purchase a 50 percent stake in Boswell Company. The excess of the purchase price over the fair value of Boswell’s net assets was attributable to previously unrecorded licenses. These licenses were estimated to have an economic life of six years. The fair value of Boswell’s assets and liabilities other than licenses was equal to their recorded book values.”
Is goodwill there in the sum?
Yug BafnaIntermediate
Intercorporate Investment
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The technical definition of goodwill is the excess of Purchase Price over Fair Value of Net Assets. The question says that the excess was attributable to unrecorded licenses, what I think they wanted to communicate was, part of the excess value was allocated to the license and the residual was goodwill.