SCHEDULE 2BANKING COMPANIES: COMPANIES ACT INDIVIDUAL ACCOUNTS
PART 2ACCOUNTING PRINCIPLES AND RULES
SECTION BHISTORICAL COST ACCOUNTING RULES
Fixed assets
Goodwill28
1
The application of paragraphs 23 to 26 in relation to goodwill (in any case where goodwill is treated as an asset) is subject to the following.
2
Subject to sub-paragraph (3), the amount of the consideration for any goodwill acquired by a company must be reduced by provisions for depreciation calculated to write off that amount systematically over a period chosen by the directors of the company.
3
The period chosen must not exceed the useful economic life of the goodwill in question.
4
In any case where any goodwill acquired by a company is included as an asset in the company’s balance sheet there must be disclosed in a note to the accounts—
a
the period chosen for writing off the consideration for that goodwill, and
b
the reasons for choosing that period.