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+--- Thread: IAS 38 ----- some queries (/thread-ias-38-some-queries)
IAS 38 ----- some queries - insaan - 07-02-2006
plz define goodwill
and internally generated goodwill
cost of internally generated goodwill cant be estimated reliably but what may be elements of cost of an internally generated goodwill
wat is goodwill as it appears in accounts
is this only goodwill acquired as a separate purchase
because internally generated goodwill cant be recognised
- Shahbaz - 07-02-2006
Assalam o Alekum Warahmatullah-e-Wabarakatuhu,
Insaan bhaiyya insaanon walay kaam karo. Petiwala ja k IAS ki hard copy khareed lo aur usko parho. parhna likhna achi baat hai agar khud kia jaye to P Allah Hafiz tc
- insaan - 07-03-2006
thx dear for such a quick response
and thx for guiding me
lakin guide karna achee baat hai agar sahee guide kia jayay to
just for ur information
i hav got hard copies of IAS
i hav got soft copies of IAS
i hav got soft copies of IAS summaries
i hav got all javed zuberi's IAS related books
i hav got shukla gupta traditional book
i hav read BPP study text
wat else should i get from petiwala
haan woh koi petion ka karobaar karta ho to woh main kahreed sakta hoon[D]
and then ap ka kehna hai k IAS ko parho
to i hav read it thoroughly
if i won't hav read it i wont have been able to ask a question
now wat the problem i faced was
IAS 38 besides many other issues also discusses treatment of internally generated goodwill para 48 to 50
but IAS38 doesn't give defintion of goodwill & internally generated goowill
so i wanted toknow exactly wat is meant by goodwill
and so turned my face to this forumfor help
i assumed people would help me rather than saying yaar aisa karo goodwill k naam say mr X nain ak kitab likhee hai woh khareed lo[8D]
kion kia khayal hai janab ka?
however i just got the definition of goodwill
it is as under
GOODWILL
Goodwill - Premium paid in the <b>acquisition of an entity</b> over the fair value of its identifiable tangible and intangible ASSETS less LIABILITIES assumed.
here i would ask senior if any other iAS gives defintion of goodwill do let me know
and 2nd part of my question was
wat is goodwill as it appears in accountsis this only goodwill acquired as a separate purchase because internally generated goodwill cant be recognised
it is also answered from defintion of goodwill as it mentions , premium paid in acquisition of an entity
so goodwill as it appears in accounts arises only in case of acquisition of an entity..PLZ DO CORRECT ME IF I M WRONG....
- Abdur.Rehman - 07-03-2006
1)Goodwill is the excess of consideration given over the fair value of assets/net assets.
4 internally generated goodwill we may take an example. if ur business is going on very well. The fair value of ur net assets in books is 1 billion. u say that ur business can be sold for 1.2 billion. Now u can not increase the value of ur assets by .2 billion. This .2 billion is the interanlly generated goodwill, that is not allowed by IASs.
2)Now u may ask a question that if the fair value of net assets is 1 billion then how can biz be sold for 1.2 billion. if im doing the biz i would say that my biz has very loyal clients and a very good reputation in the industry. Thats y my biz can be sold for 1.2 billion.
Now tell me "can u ascertain the cost of customer loyalty or reputation of biz".
3)exactly. Goodwill appearing in accounts prepared under IASs will be the goodwill acquired with a biz unit.
and it is also computed as a difference b/w the consideration paid and fair value of assets.
Sory for a late reply. actually the problems is that, working in the firm we get quite less time to come online and reply the queries. But i would ask u not to get annoyed at ppl giving such remarks. u seem to be a nice student.
IFRS 3 Business Combinations discuss this in detail. It is also discussed in IAS 27 and 28. But if u r in module C u dont need to get into that.
anyways best of luck
and ask any more questions if u have
- Shoaib Ansari - 07-04-2006
good.... A very comprehensive answer ...
as far as companies ordinance is conceren we need to amortize the goodwill within 20 years after its recognation / purchase ...plz correct me if i am wrong...
- rememberence - 07-04-2006
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Shoaib Ansari</i>
<br />good.... A very comprehensive answer ...
as far as companies ordinance is conceren we need to amortize the goodwill within 20 years after its recognation / purchase ...plz correct me if i am wrong...
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Companies Ordinace doesnt specify such requirment. Perhaps you are refering to Income Tax Ordinance, 2001. Moreover after the adoption of IFRS 3, the concept of amortization is no more valid. Now onwards the goodwill shall be reveiwed for impairment at each balance sheet date.
- insaan - 07-04-2006
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote">Shoaib Ansari Posted - Jul 03 2006 70110 PM
good.... A very comprehensive answer ...<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
u r very rite
- nabeelanwer - 07-04-2006
What are the Exact Definitions of the Followings
Inferred Goodwill
Inferred Capital
Inferred Dividend
????
- Shahbaz - 07-05-2006
Assalam o alekum warahmatullah-e-wabarakatuhu,
nabeelanwer open www.google.com.pk .In the search box type defineInferred Goodwill
u'll get lots of definitions of Inferred goodwill if not then type goodwill only D .. thanks Allah Hafiz
- nabeelanwer - 07-07-2006
i have tried but not found exact one!
- Abdur.Rehman - 07-10-2006
well Mr. nabeelanwar these are all very complex things...
inferred goodwill is used in step consolidation..
inferred capital is used in financial business models and quite an old concept now..
can u plz tell, y u want to ask about these....
Just saw these words in some newspaper or journal and r curious?
or to test knowledge of others?
and wut r u doing, that u want to know about them... as ICAP doesnt test these and most of ACCA r unaware of it..
Plz tell me the utility of it to u, ill explain u...
- nabeelanwer - 07-10-2006
I have read these terms in an accountancy journal. anyhow it have'nt any direct affiliation with my studies, i wana just know what are these terms actually. me student of mod c? its your perception that i'm testing your knowledge!
- Abdur.Rehman - 07-12-2006
Ok
thats good that u read accounting journals. its a good habbit.
no negative intentions...or perceptions....
bye