Goodwill & Land

[Stevie Ray]

When calculating goodwill by identifying the difference between the FV of net assets and the BV of net assets, is the fair value of land included if it is above book value?
For some reason I had thought you keep land at BV but I did a mock question that put it the same way as all other assets.

 

[h21]

just saw this, can someone answer this?

 

[Claudz6]

You should be using the fair value of assets vs the purchase price paid to calculate goodwill always. The only diff will be between us gaap and ifrs which assets you need to pick up - IFRS- limits recognition to net idenfiable assets, US GAAP uses all assets.

 

[turbo989]

It decreases your GW, just don’t depreciate it…

 

[olympria]

http://postimg.org/image/b1r484hnv/