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Negative goodwill arising on a business combination should be shown as a negative asset in the statement of financial position. True or false?

Financial Accounting Financial Management
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Question added by Deleted user
Date Posted: 2013/08/28
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Deleted user
by Deleted user

False

Prince Ninan
by Prince Ninan , Audit Executive , Lewis & Pecker

There is no concept of negative goodwil.
If value of net asset is more than purchase consideration it should be credited to capital reserve a/c.

Deleted user
by Deleted user

False

Mohammed Salim Allana
by Mohammed Salim Allana , Compliance and Assurance Manager , United Arab Bank

False

Muhammad qasim khan
by Muhammad qasim khan , Asst Financial Manager , Bukhatir education advancement and management

false.
there is nothing such thing negative goodwill in a business combination.
when business combiness the only question arise weather is a good will or not.
the good will of any company before combination is its asset.

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