Journal of Accounting and Management Information Systems (JAMIS)


The impact of using IFRS 3 „Business combinations” on businesses’ goodwill

13-14/2005 ,   p109..112

Author(s):  
Alina Mihaela CURPĂN


Keywords:   goodwill treatement, business combination, goodwill amortization

Abstract:  
The paper is a presentation of the goodwill treatment under International Financial Reporting Standard No.3 (IFRS 3 „Business combinations”). Before April 2004, the date of issuance the IFRS 3, another standard (IAS 22 „Business combination”) was settelling the goodwill's treatment. IFRS 3 brings some new elements: „say good-bye to goodwill amortization” and if the difference on consolidation is negative, it is recognized in the profit and loss account, immediately. Also, the paper synthesizes the recognition, measurement and depreciation of the goodwill. The first measurement of goodwill is sustained by a case study that illustrated the business combination accounting records.


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