Understanding Goodwill

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This is for John, and Sade, who will be writing F3 and F7 in the December 2013 exams, and want a bit of help with understanding the basis for Goodwill calculations, and Fair value for their exams.

Before I get started, it is important to note that the advanced level papers builds up on knowledge from the Fundamentals level papers. E.g.: In F3, you get Goodwill questions/calculations at a basic level; it gets a bit more complex in F7, and has a lot more detail in P2.

So, it is important to grasp the basic, and build-up on it.

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*The above is just a summary of what you should know. Please practice past question papers, and read up on  IFRS 3 here.

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