DFS Goodwill

slw

Hi, i was wondering if someone could help me.

When calculating goodwill for the consolidated balance sheet where does the consideration figure come from? In the December 2007 paper the consideration is £26,000.

Thanks

sebastianforbes

consideration is the amount paid/invested in the associate/subsidiary.

consideration is necessary for a contract to be legally binding.

you'll find it at the bottom of the non-current assets. you remove it when you consolidate the accounts.

i hope this helps.

slw

Thanks for your help, it makes perfect sense now. :001_smile: