Revaluation of goodwill
TreadStone
Registered Posts: 280 Epic contributor 🐘
Putting together final accounts for a new client (acquired from another Accountant).
Pretty standard Ltd Co with husband & wife directors/equal shareholders. Goodwill on BS showing as £100k. No issues so far.
A few queries relating to fixed assets have led me to take a look at older accounts. Jump to 2006 (incorporation) and Goodwill additions of £100k. This has then been amortised evenly @£10k pa for 5yrs until 2011 & 2012 when there are entries of £30k & £20k respectively to Revaluation Reseve boosting Goodwill back to it's original £100k.
I didn't think was allowed under FRS10. There hasn't been any changes in this time (eg a new director coming in with £x worth of contracts etc) that may explain the entries and the previous Accountant is frugal with supplying information to say the least.
I'm also assuming this isn't acquired goodwill but the amount agreed on incorporation.
Has anyone come across this before ?
Pretty standard Ltd Co with husband & wife directors/equal shareholders. Goodwill on BS showing as £100k. No issues so far.
A few queries relating to fixed assets have led me to take a look at older accounts. Jump to 2006 (incorporation) and Goodwill additions of £100k. This has then been amortised evenly @£10k pa for 5yrs until 2011 & 2012 when there are entries of £30k & £20k respectively to Revaluation Reseve boosting Goodwill back to it's original £100k.
I didn't think was allowed under FRS10. There hasn't been any changes in this time (eg a new director coming in with £x worth of contracts etc) that may explain the entries and the previous Accountant is frugal with supplying information to say the least.
I'm also assuming this isn't acquired goodwill but the amount agreed on incorporation.
Has anyone come across this before ?
0
Comments
-
only if there is an ascertainable market value should G/W be revalued under FRS10. of course it is rare that G/W can be valued unless you have a firm acquisition offer0
-
or perhaps there was deemed an error in their amortisation/impairment calculations0
-
That would seem odd given that amortisation had been applied evenly @ £10k pa for 5 year before the changes.Bmer82 said:or perhaps there was deemed an error in their amortisation/impairment calculations
0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 319 NEW! Qualifications 2022
- 157 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 92 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 274 Tax
- 136 Bookkeeping
- 7.2K General accounting discussion
- 201 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership