Real Estate
Goodwill on Acquisition of Property Portfolio
Recording goodwill when acquiring a real estate company for more than the fair value of its property assets.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Investment Properties (Fair Value) | Asset (+) | 10,000,000.00 | - |
| Goodwill | Asset (+) | 500,000.00 | - |
| Cash / Bank | Asset (-) | - | 10,500,000.00 |
💡 Accountant's Note
When acquiring a property company rather than individual assets, any premium paid over the net fair value of assets acquired is recorded as goodwill under IFRS 3.
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