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Goodwill offset against equity


Has anyone understood what goodwill offset against equity is and means?

Usually seeing goodwill as asset account, so wonder if and when goodwill is offset? Do companies have a choice?

Thank you

"Using Wiley for my CFA journey was by far the best option… I was able to pass on my first attempt.”– Moe E., Canada

Has anyone come across this? thanks

Don’t know this in CFA context, but in LBO/M&A we normally price the Tangible Equity which is Equity net of existing goodwill and create a new goodwill which is the difference between Purchase Price and difference between market value of Net Assets (asset write ups etc). It is also in line with Purchase Accounting. In other words, we make existing goodwill zero as buyer do not pay for existing goodwill and reduce the equity with the same amount.