A reserve (a special reserve) that is created to amortize (write off) an entity’s goodwill. Goodwill arising on a business combination (being the excess of the fair value of the consideration paid over the fair value of the standalone net assets acquired) is debited to a goodwill write-off reserve.
In the opposite scenario, any excess of the aggregate of the fair value of the standalone net assets acquired over the fair value of the consideration paid (negative goodwill) is credited this reserve. The balance on the reserve represents the cumulative goodwill written off to reserves on the acquisition of a subsidiary/ an associate, etc.
