People often describe equity as a residual. That description is not fully accurate and may mislead people. There are probably three reasons why some people use that description: the definition of equity includes the word residual. the total amount of reported equity is measured as a residual. the pre-2018 version of the IASB’s Conceptual Framework… Continue reading Equity is not a residual
Tag: Residual
I can’t get excited about goodwill
Many people have strong views about whether the International Accounting Standards Board (Board) should reintroduce amortisation of goodwill. But I can’t get excited about that as a topic for standard setting now, for two reasons: I think the arguments for amortisation (with impairment) and the arguments for impairment-only are quite finely balanced. I’m not sure… Continue reading I can’t get excited about goodwill