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Calculate goodwill - PowerPoint PPT Presentation

Calculate Goodwill

Step 3. Calculate Goodwill. To calculate goodwill, we compare Cost of Acquisition (from Step 2) with Fair Value of Identifiable Net Assets Acquired (from Step 1) If COA > FV of INA We must recognise Goodwill. If COA < FV of INA, we will recognise an item of Revenue, known as Excess.

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Calculate goodwill - PowerPoint PPT Presentation

Calculate Goodwill