SAP Goodwill
Per Odomirik: " Under statutory purchase accounting, the assets and
liabilities of the acquired entity are recorded at their historical carrying (i.e., book) values. Goodwill is
calculated as the difference between the purchase price and the net book value of the acquired entity.
Goodwill is limited in the aggregate to 10% of the acquiring entity’s capital and surplus" (emphasis added).
Per formula sheet/answer on 2019.Fall 21 bc: Goodwill = min ( P – S , 10% x S )
If I understand Odomirik correctly, shouldn't those two S be different? i.e. min ( P – S_acquiree , 10% x S_acquirer )?
Comments
That's correct. I have clarified this on the formula sheet. Thx!
I think BattleCard 19 in the Ch 22-23 Wiki still has only one S for both definitions (I came to the discussions to ask about that)
We corrected Battlecard 19 to read S1 and S2, and sent a shout-out to you - thank you!