The revaluation upwards of the fixed assets by 2, and the consequent reduction of the goodwill figure
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The revaluation upwards of the fixed assets by £2, and the consequent reduction of the goodwill figure by £2 brings the figures into line with how P views them. Where there are depreciation charges on the revalued assets, they also need to be adjusted.
Let’s look at an example of the amendments made when balance sheet values are adjusted to fair values.
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In Ps eyes it is giving 18 for physical assets worth 17 and the goodwi...View the full answer
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Related Book For
Frank Woods Business Accounting Volume 2
ISBN: 9780273693109
10th Edition
Authors: Frank Wood, Alan Sangster
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