Hello

I wonder if anyone can help. I understand that goodwill needs to be amortised over a period of time. What would be a reasonable amount of time for a cafe?

Also, how exactly is this shown on the p & l, is it under standard depreciation or as a seperate entity.

Many thanks in anticipation
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Another question if anyone is able to help.

If accounts are only for a part year as business still in first year, should goodwill be amortised this year, if not how is it shown.

Many thanks, I do appreciate any help this is not something I have come across before.
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Okay I guess you are doing it yourself and not using an accountant :)

If the cafe has a lease then amortise over the same length of time as the lease.

Don't forget if you bought lease from a third party and you operate through a Ltd Co then you can claim a tax deduction for amortised goodwill.

Jason
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Hi Jason

Thanks for reply. There is no lease involved, which is why there seemed no logical length of time to choose.
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In that case it should be amortised over its useful economic life up to a maximum of 20 years.

Jason
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