UK GAAP Groups · Track 2 · Tutorial 3 of 3
Amortise goodwill and bring local figures onto UK GAAP
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Under FRS 102, goodwill is amortised over its useful life instead of only being tested for impairment. The amortisation is a group adjustment: post it as a recurring GAAP journal on the group, and use the same kind of journal for any other difference between a subsidiary’s local standard and UK GAAP.
1Work out the amortisation
Company F’s goodwill is 160,000, from its acquisition in September 2026. FRS 102 amortises goodwill over its useful life; when that life can’t be estimated reliably, it is no more than 10 years. Your Group uses 10 years: 16,000 a year, 1,333.33 a month.
| Posted on the group | Goodwill exists only in the consolidation, so the journal is entered with Your Group selected. No company’s own books change. |
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| Part of the one consolidation | BrizoConsol has no UK GAAP-only entries: the journal is in the Base reports as well as the UK GAAP statements. |
| Easy to find | A Journal ID that starts with the standard, such as UK-GAAP-, and the matching Journal Type let you list every UK GAAP adjustment at once. |
2Add the two accounts
- Open Settings → Global Settings → Common COA, and click Add.
- Add 1810 Goodwill - Accumulated Amortisation in the non-current asset section, next to 1800 Goodwill.
- Add 6850 Amortisation of Goodwill in the expense section.
| Names matter | The UK GAAP balance sheet puts every asset account whose name starts with Goodwill on Intangible Assets. So the accumulated amortisation starts with Goodwill, and Intangible Assets shows the goodwill net of it. |
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3Post the amortisation every month
- Select Your Group, and open Adjustments → GAAP Journals. Keep the Scenario on Actual.
- Click Add a new journal entry.
- Enter the Journal ID UK-GAAP-GWA-F, the date 30 September 2026, the Journal Type Goodwill amortisation, and a Description.
- Tick Recurring journal, with Start Period Sep 2026 and End Period Aug 2036, the end of the 10 years.
- Debit 6850 Amortisation of Goodwill 1,333.33, credit 1810 Goodwill - Accumulated Amortisation 1,333.33, and click Confirm.
A recurring journal is posted once for each month from the start period to the end period, with the month added to the Journal ID: UK-GAAP-GWA-F-202609, UK-GAAP-GWA-F-202610 and so on.
4Bring other local figures onto UK GAAP
A subsidiary keeps its books under the standard that applies to it. Where that standard differs from FRS 102, post the adjustment the same way: a GAAP journal on the group, a Journal ID starting UK-GAAP-, and the Journal Type that says what it is — Leases, PP&E, Development costs, Financial Instruments and the other GAAP types. For a subsidiary in another currency, set each line’s exchange rate.
5Check the amortisation
- On GAAP Journals, type UK-GAAP- in the search box. Only the UK GAAP adjustments are listed.
- Open Reports → All Reports → Consolidated Balance Sheet and Consolidated Profit and Loss Account for December 2026.
Check
Intangible Assets is Company F’s goodwill less four months’ amortisation: 160,000 less 5,333.32, 154,666.68. The profit and loss includes the 5,333.32 in Other Operating Expenses, unless you classified 6850 on Administrative Expenses.
6If something goes wrong
| Intangible Assets doesn’t go down | The accumulated amortisation account’s name doesn’t start with Goodwill, so it is in Investments. Choose it on Goodwill on the Balance Sheet tab of the Accounting Standard page, and click Save Changes. |
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| Recurring journal end period must be on or after the start period. | Set the End Period at or after the Start Period. |
| GAAP Journals isn’t under Adjustments | No accounting standard is enabled for the group. Enable UK GAAP on the Accounting Standard page. |
| One or more selected periods are locked. | A month in the recurring range is locked. Ask an administrator to unlock it, or start the journal after it. |
Want more detail? See the documentation