Negative goodwill , where?

[Pearl]

what to do with negative goodwill? put in General reserve or retained earnings? Please help.

[Sonal]

Negative goodwill = Purchase price of an acquired business - Amount paid

Revised IFRS 3 requires it to be recognised in the income statement immediately as gain on bargain purchase.

Negative goodwill is treated as an item of income, and reflected in the consolidated SOCI (income statement).

[Pearl]

Thanks. But which item in Income statement? Is it under Retained Earnings or under Other Income?

[Sonal]

negative goodwill is recorded as other income in the consolidated SOCI (income statement).

[Acid]

There are no retained earnings in CSFI. As Sonal said it should be recorded under other income in CSOCI.

Please make post in proper threads next time.

Regards

[Pearl]

Sorry, i am new here. What do you mean by 'make proper threads next time'.

[Pearl]

Thanks very much for advice.