Goodwill

I have a client who has about £40k of goodwill and he wants to revalue this. It was brought on to his balance sheet a number of years ago when he incorporated. Does anyone know if this can be done and if so how?
Thanks in advance.
Thanks in advance.
0
Comments
Just even a pointer will do.
Thanks in advance
Gill x
You cannot revalue goodwill as you can with, say, a building under FRS 15/IAS 16 (FRS 10 / IFRS 3 deal specifically with goodwill - whilst FRS 10 / IAS 38 deal with other intangibles). Only in extremely rare circumstances will readily ascertainable market values ever be available for intangible assets - particularly goodwill. In your particular situation, where goodwill has been an 'incorporation' exercise, as was particuarly common a few years ago, your client's goodwill will not have a readily ascertainable market value.
This question is asked quite a lot because accounting for intangible assets (particularly with goodwill) is confusing, I therefore took the opportunity to clarify the issue.
Hope that helps.
Regards
Steve
Note: IFRS strictly PROHIBITS goodwill amortisation and in every case you would be expected to test for impairment (contrast this with IFRS for SMEs which will allow entities to amortise goodwill if UEL is 10 years or less!)
Regards
Steve
@steve you are amazing. Thanks for clarifying that.
Gill x