Note on BattleQuiz 19 - 2017.Fall 19 b
Under this card, there is a note:
also:
if goodwill > 0 → establish an asset equal to the goodwill amount
if goodwill < 0 → recognize immediately as operating income gain
Does this apply to GAAP only or both SAP and GAAP?
Thanks!
Comments
That applies just to GAAP. I edited the BattleCard to make it more clear. Thx!
Also, under GAAP's goodwill formula, shouldn't it be
GAAP goodwill = P - (net assets) = P - [FV(assets) - FV(liabilities)] = P - FV(assets) + FV(liabilities) ?
Thanks!
Yup!! I fixed it and gave you a double shout-out. Thx!