Question

On consolidation, if the total value of the fair value of the asset acquired is less than the whole purchase consideration then the difference should be treated as

Answer 1

Answer:goodwill

Explanation:

Answer 2

GOODWILL

On consolidation, if the total value of the fair value of the asset acquired is less than the whole purchase consideration then the difference should be treated as goodwill.

GETTING TO KNOW MORE ABOUT GOODWILL IN ACCOUNTING:

* Goodwill is an intangible asset related with the purchase of a commercial enterprise with the aid of using another.  Goodwill exists for lots of reasons, along with the price of a company's logo name, a robust consumer base, desirable client relations, desirable body of workers relations, and proprietary technologies.

* In theory, quantifying goodwill is easy, however in reality it could be extraordinarily difficult. In a easy calculation, deduct the internet honest marketplace price of recognized belongings and liabilities from the company's buy fee to get goodwill.