Goodwill: What You Need to Know to Pass SBR | Old But Gold Series

*This episode is part of my Old but Gold series, where I revisit some of my earlier podcasts that are still completely relevant for your SBR exam today. The recording may be from the archives, but the knowledge and exam technique are every bit as useful now.* Goodwill is central to group accounting and comes up again and again in SBR. In this episode, I give you a focused tour of what you need to know, starting with the basic goodwill calculation: the parent’s investment, the non-controlling interest and the fair value of the subsidiary’s identifiable net assets at acquisition. You’ll learn how consideration is measured, how the choice of NCI measurement affects goodwill and impairment, and why fair value adjustments can also create deferred tax. I also cover identifiable intangible assets, contingent liabilities, impairment of goodwill, bargain purchases, step acquisitions, foreign subsidiaries, disposals and the 12-month measurement period. There is plenty here, but the aim is simple: helping you recognise which goodwill rule the examiner wants you to apply. **Thanks for listening to this episode of Pass Your SBR ACCA Exams with Tom Clendon.** If you’d like to view the exam question on screen and see my working, subscribe to the YouTube Channel:⁠⁠⁠⁠ ⁠⁠https://www.youtube.com/@tomclendonSBR⁠⁠⁠⁠⁠⁠. For access to on-demand support and guidance for your ACCA SBR Journey, visit my website to see my current course offering:⁠⁠⁠⁠ ⁠⁠https://tomclendon.co.uk/⁠⁠⁠⁠⁠⁠. (0:00) Old but Gold introduction (0:33) What you need to know about goodwill (1:08) Parent investment and fair value of consideration (2:07) Measuring the non-controlling interest (2:30) NCI measurement and impairment (3:10) Calculating goodwill (3:26) Fair value adjustments and deferred tax (4:23) Intangible assets and contingent liabilities on acquisition (5:27) Goodwill impairment and cash-generating units (6:10) Negative goodwill and bargain purchases (6:39) Step acquisitions and foreign subsidiaries (7:19) Disposals, control-to-control transactions and measurement period