Page 318 - SBR Integrated Workbook STUDENT S18-J19

Chapter 20

1.3 Translating goodwill

Goodwill should be calculated in the functional currency of the subsidiary.

According to IAS 21, goodwill should be treated like other assets of the
subsidiary and therefore translated at the reporting date using the
closing rate.

Example 1 – continued

Using the information in Example 1, calculate goodwill for inclusion in
the statement of financial position.

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