How goodwill and capital reserve are differentiated as per AS-14?

CS Professional · Corporate Restructuring, Insolvency, Liquidation & Winding-up · PYQS · December 2019
How goodwill and capital reserve are differentiated as per AS-14?

Answer & Explanation:

As per Accounting Standard 14 , goodwill is the excess of the price paid in a purchase over the fair value of the net identifiable assets acquired. Capital reserve is the excess of the fair value of the net identifiable assets acquired over the purchase price. The concept of Goodwill or capital reserve will arise only when amalgamation is in the nature of purchase.

Topics: Accounting Standards

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