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Significance of goodwill in the consolidation process

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What is the significance of goodwill in the consolidation process?

Why is it necessary to determine goodwill impairment?

Do you agree with the change in accounting for goodwill? Why or why not?

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Solution Summary

The expert determines the significance of goodwill in the consolidation process.

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Answer:
Goodwill has a great importance in consolidation process. This is goodwill that decides that whether the consolidation has helped the organization to achieve synergy. Consolidation in organization occurs when there is mismatch of goodwill within companies operating in the industries.

As it is known that the goodwill that is ...

Solution provided by:
Jayant Kumar, MBA
Education
  • MBA, Indian Institute of Finance
  • Bsc, Madras University
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