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Topic
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Scenario 1:
Company A acquires Company B for 1,000.
Company B’s BV is 500 with a FMV of 1,200.
We do not recognize goodwill of 500? It is considered gain of 200?
Scenario 2:
Company A acquires Company B for 1,000.
Company B’s BV is 500 with a FMV of 900.
We recognize a goodwill of 500?
I had thought all along that as long as purchase price is > BV, it is considered goodwill.
FAR 85 June 2015
AUD 80 Nov 2015
REG 83 Nov 2015
BEC 79 Feb 2016
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