Question ID :
44931
Investment in Associate
When Investment done in associate company before 2 years at that time goodwill was calculated now that company came up with IPO due to which our percentage holding reduced from 40 to 22 then now again need to recalculate goodwill or not as per AS 23? or should we just add % of profit in reserves as per new % ?
Posted by
TIRTH SHAH
on
Oct 28, 2025
Filed Under
AUDIT
No need to calculate Goodwill again as Goodwill/Capital reserve is calculated at the time of acquisition only. All post adjustments will be made in the value of investment.
Posted by
SUMIT KUMAR BAGRA on
Oct 31, 2025
Answer ID :
86018
agree with bagra
Posted by
SIVADAS CHETTOOR on
Nov 12, 2025
Answer ID :
86022
Goodwill calculated earlier will remain the same.
From the date of dilution onward, you should simply recognize the share of the associate's profits/reserves using the new 22% holding.
Posted by
CA. JHA SHANKAR KUMAR on
Nov 17, 2025