Handling of goodwill
Estimate of goodwill
|Note 1:||Merger compensation is the amount obtained by multiplying unit price of one investment unit of the new investment corporation, which is the compensation for the merger, by the number of investment units allocated.|
|Note 2:||In accordance with the Accounting Standards for Business Combinations, assets and/or liabilities of corporations to be acquired will be assumed based on their market value.|
Accounting treatment of goodwill
|*||For accounting purposes, it will be regularly amortized through the fixed amount method for twenty years. The amortization costs will be recorded as operating expenses in the statement of income and retained earnings.|
Effect of goodwill
The goodwill amortization is considered as expenses for accounting purposes. However, since it does not accompany cash outflows, distribution in excess of earnings is conducted so as not to affect the level of distribution.