How to factor in goodwill

How to factor in goodwill

The creation and amortisation of goodwill is now available for consolidations.

The process uses the record type of Other fixed Asset.

  1. In the parent forecast, under Fixed Asset, add a new Other Fixed Asset record called "shares” , this  records the value spent on the shares of the subsidiary.
  2. In the consolidation, click Goodwill from the consolidation menu and the screen will display the other fixed asset records on the left. 
  3. Then you select the subsidiary that is that investment and the net asset value, then the goodwill value is displayed.
  4. We then eliminate the value of the asset against the investment the difference being recorded as goodwill.
  5. A new record is added to the system records. This can then be amortised (depreciated) at a rate or manually

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