DFS Goodwill

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slw
slw Registered Posts: 3 New contributor 🐸
in AAT Level 4 (Level 8 in Scotland)
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

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  • sebastianforbes
    sebastianforbes Registered Posts: 172 Dedicated contributor 🦉
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    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
    slw Registered Posts: 3 New contributor 🐸
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    Thanks for your help, it makes perfect sense now. :001_smile:

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