What a great Tute we had today, thanks Maria.
When I think of Goodwill I automatically think of attributes such as honesty, integrity and loyalty.
Goodwill in accounting terms represents what you paid as an investor towards shares within a company to what profit you receive.
As outlined in the documentary about the collapse of ABC learning centres, their Goodwill figures were beyond correction which contributed to the company going into receivership.
For a brief overview of the ABC Learning Centre's collapse and access to order your own copy of the DVD we watched in class, click on the link below:
http://www.cpaaustralia.com.au/cpa-program/information-for-academics/abc-learning-collapse-case-study
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ReplyDeleteErikai - great blog ... and interesting company ... the social costs of gambling ... where do they feature in your firm's accounts ...and how does accounting include these in ebet's accounts?... and how can accounting help managers of ebet take into consideration the broader social costs of what they decide to do
ReplyDeleteHi Martin,
ReplyDeleteIn response to your question, the financial statements and the annual report don't feature social costs. Social costs aren't considered by accounting unless the company makes a social transaction such as sponsorship or community grants.
Hello Erikai
ReplyDeleteI like your blog! Very interesting
:)