What is the treatment for decrease in goodwill?
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The simple answer is that goodwill is not acquired directly, so if goodwill increases on the balance sheet that does not imply that the same amount of cash was spent to purchase it. You need to know the details of the underlying transaction that created that goodwill.
Goodwill arises when acquiring a subsidiary (or associate company) at a consideration greater than the fair value of the net identifiable assets.
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