alleryStart learning →Goodwill arises when the price paid for a company exceeds what?
AIts authorised capital
BIdentifiable net asset value
CIts market capitalisation
DIts issued par value
Answer & Solution
Correct answer: B. Identifiable net asset value
Goodwill is the premium paid over the net fair value of the acquired company's identifiable assets and liabilities.
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Related questions
Which business combination method has been disallowed under US GAAP since 2001?Goodwill can be recognised only through what?Goodwill in consolidated statements is treated as what type of asset?Acquirer pays Rs 60,000 for 100% of net assets with fair value Rs 40,000. Goodwill equals:A buys 100% of B for Rs 20 lakh. B's identifiable net assets at fair value are Rs 9 lakh. A negative goodwill result on acquisition is recognised as what?Consideration transferred in a business combination is measured at:After acquisition, NCI is updated for its share of the subsidiary's: