BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Any excess of the amount of purchase consideration over the value of net assets of the transferor company acquired by the transferee company should be recognised as goodwill in the financial statements of transferee company. Was this answer helpful?

Detailed explanation-2: -Any excess of the amount of the consideration over the value of the net assets of the transferor company acquired by the transferee company should be recognised in the transferee company’s financial statements as goodwill arising on amalgamation.

Detailed explanation-3: -Goodwill refers to the value a company gets from its brand, customer base and reputation associated with its intellectual property. Goodwill is a long-term assets that generates value for a company over a number of years.

Detailed explanation-4: -Goodwill is an intangible asset, but also a capital asset. The value of goodwill refers to the amount over book value that one company pays when acquiring another. Goodwill is classified as a capital asset because it provides an ongoing revenue generation benefit for a period that extends beyond one year.

Detailed explanation-5: -The excess of the purchase price over the fair value of net acquired assets is shown as goodwill.