Hello,
I would be grateful for your advice on the following situation:
Company P buys 100% of company A and recognises goodwill in its consolidated financial statements. 3 months later the two companies merge and in the next period’s financial statements the goodwill is no longer separately presented, but presented in the notes as part of the investment property and is called “value of rentals” (company A owned a shopping mall). My question is: What happens to goodwill when a parent and subsidiary merge and which IFRS/IAS would you advise me to consult?
Is it appropriate for the goodwill in this case to be impaired with the difference between the carrying value of the investment property(at cost after depreciation) and its Fair Value as of the SOFP date.