06-17-2005, 03:48 AM
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by CBPian</i>
<br />Guys... A small question.
Company A has spun off its Business A to a sister company B. In A's balance sheet, there is a goodwill component(asset) relating to acquisition of Business A. Business A was earlier acquired from company X.
What will be the treatment of this goodwill. Will it be transferred to company B as an asset and would there be cashflow implications (money to be paid by Company B to A)?
A quick answer, assuming that the goodwill was bought from company X (ie it isn't company A's inherent goodwill, although there are some exceptions), it will become part of the fair value of company A.
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http//s4.invisionfree.com/AccountingWorld/
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
"You don't get to choose how you're going to die. Or when. You can only decide how you're going to live. Now."
<br />Guys... A small question.
Company A has spun off its Business A to a sister company B. In A's balance sheet, there is a goodwill component(asset) relating to acquisition of Business A. Business A was earlier acquired from company X.
What will be the treatment of this goodwill. Will it be transferred to company B as an asset and would there be cashflow implications (money to be paid by Company B to A)?
A quick answer, assuming that the goodwill was bought from company X (ie it isn't company A's inherent goodwill, although there are some exceptions), it will become part of the fair value of company A.
===========================================
http//s4.invisionfree.com/AccountingWorld/
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
"You don't get to choose how you're going to die. Or when. You can only decide how you're going to live. Now."
