SAP Goodwill
Could you explain what amortized to unrealized gains means? Just having a hard time wrapping my head around the concept.
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Could you explain what amortized to unrealized gains means? Just having a hard time wrapping my head around the concept.
Comments
Could you tell me where you find this phrase?
The examiner’s report in Fall 2016 # 18. “ Goodwill is amortized to unrealized gains for a period of no more than10 years”
This means: "Goodwill is apportioned into yearly increments, for a period not to exceed 10 years, and placed in unrealized capital gains."
Where is this "unrealized capital gains"? in Balance Sheet or Income Statement?
It is included in the Balance Sheet, but does not flow through income. So, it's added on as a credit to surplus in the Capital & Surplus section of the Income Statement.
Thanks. Would both negative and postive SAP goodwill only impact the purchasing company's SAP balance sheet and never impact SAP income statement?
Yes, correct.