How to measure Goodwill in a business combination?

Is calculated fame merger or investment as follows: Goodwill = cost of the investment - the net assets of the acquiree at fair value, net assets of the acquiree at fair value = Total assets at fair value - total liabilities at fair value and show we have two types of fame: a positive month: When the cost of greater than the net asset investment at fair value of the company purchased and show positive month in the lists of the purchasing company in the asset side.

(B) negative goodwill: When the cost of the investment is less than the net assets at fair value of the company purchased and here are the devaluation of fixed assets fair value of the company purchased the equivalent of the value of negative goodwill and if increased, it is loaded the increase to revenue deferred account appears in the liabilities side of the purchasing company and are amortized over five years, so every year is amortized and treated as part of the revenue of the purchasing company account to be deferred revenue to extinguish account deferred revenue.

Goodwill = (Consideration paid + Fair value of noncontrolling interest)– (Assets acquired – Liabilities assumed)

Thanks a lot Mr George about your detailed explanation of that very important financial issue. I totally agree with your answer.

goodwill = consideration - fair value of tangible assets net of liabilities  - calculated intangibles (customer base , contrcacts , etc.)

posotive goodwill will be measure periodically for testing impairment , negative goodwill will be treated as revenue in the same year of allocation 

Paragraph43 of Statement141 states, in part, that “[t]he excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed shall be recognized as an asset referred to as goodwill.” The amount recognized as goodwill can only be properly measured through this residual method. 

Agree with you MR.Georgre

In addition to the previous answers

  • Must fame on the distribution of ownership on each cash generating units for the investor who owned fame in the business combination regardless of whether the assets and liabilities of the investor on the distribution of these units.

• Each unit goodwill has been allocated must:

Represents the lowest level within the facility where the goodwill is monitored for internal management goals.

Agreed with the answer, Mr. George

agreed with Mr georgei

i agree with georgei assi

Thank you for the invitation ... mr georgei assi answer thorough and wonderful