GOODWILL WRITE-OFF

System
System Posts: 100,537 🤖 Admin 🤖
edited 8:21AM in General accounting discussion
Does anyone know the time period that Purchased Goodwill on an Accountancy Practice should be written-off over?

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  • System
    System Posts: 100,537 🤖 Admin 🤖
    GOODWILL WRITE-OFF

    FRS 10 Goodwill and intangible assets:<BR>This was the result of lengthy debate. It states that purchased goodwill and intangibles should be capitalised and amortised over their useful economic life on a straight line basis. There is a presumption that this does not normally exceed 20 years. It recommends an annual impairment review where an indefinite useful life is assumed.<BR><BR>I hope this helps<BR><BR>Annette
  • System
    System Posts: 100,537 🤖 Admin 🤖
    GOODWILL WRITE-OFF

    Isn't it in blocks of 5 years; so it can be ammortised over 5, 10, 15 and 20 years?<BR><BR>Mandy<BR>- x -
  • System
    System Posts: 100,537 🤖 Admin 🤖
    GOODWILL WRITE-OFF

    I've not heard that, Mandy but you may be right. I just did FRS10 last year and that was the ruling then but it may have changed or been revised.<BR><BR>Annette
  • System
    System Posts: 100,537 🤖 Admin 🤖
    GOODWILL WRITE-OFF

    Hi ya<BR><BR>I agree with Amanda's comment Ref: FRS10. I have to say that I have never heard of the block 5, 10, 15 yrsâ?¦..would be interested to know where that came from?<BR>
  • System
    System Posts: 100,537 🤖 Admin 🤖
    GOODWILL WRITE-OFF

    Sorry â?? that should have been Annetteâ??s comment not Amandaâ??s
  • System
    System Posts: 100,537 🤖 Admin 🤖
    GOODWILL WRITE-OFF

    I just remember it from college - it could have been my tutor saying that exam questions were usually written in 5, 10, 15 years to simplify them.<BR><BR>AAARGH! I dont know now!

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