AS-26(goodwill) application in amalgamation, conversion and sale of partnership firms.
As per AS-26,only purchased goodwill can be shown in books, but in problems related to conversion/sale of partnership firms to company in study material they are providing purchase consideration for goodwill also.
generally in conversion/sale of firm to company problems,they are including goodwill ,in business purchase a/c , as well as in computing P.C . Isn't that contradicting AS-26 acc to which only purchased goodwill can be shown in books.
AS-26 does not apply to goodwill arising on an amalgamation and goodwill arising on consolidation