Measuring the goodwill

Measuring the goodwill
The existing AS 14 requires that the goodwill arising on amalgamation in the nature of purchase is amortised to the statement of profit or loss over a period not exceeding five years and in case of amalgamation in the nature of merger excess consideration over net assets taken over, is adjusted against the revenue reserves. Under Ind AS 103, the goodwill is not amortised but tested for impairment on annual basis in accordance with Ind AS 36.


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