Briefs: Goodwill charge

Tuesday 10 January 1995 19:02 EST
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Fifteen per cent of companies writing off goodwill now charge it to a separate goodwill reserve, according to Edinburgh-based accounts monitor Company Reporting.

Last December, the Accounting Standards Board proposed creating a separate goodwill reserve in its discussion paper "Goodwill and intangible assets", and - according to Company Reporting's latest bul lletin published this month - the engineering company Clyde Blowers has joined the list of companies taking this approach rather than lumping goodwill with other items in reserves.

Lucas, however, charges goodwill of £94m, previously taken to reserve, against profits in the year which the business has marked for later disposal. This is contrary to the the ASB principle.

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