25 May, 2018
The MOF specified in a letter dated March 30, 2018 the requirements and the supporting documents to be submitted in order for company to recognize business goodwill as result of a merger.
The MOF indicates in principle that when a company conducts a merger or acquires the business of another enterprise pursuant to the Business Mergers And Acquisitions Act or the Financial Institutions Merger Act with a reasonable business purpose, it is entitled to recognize the business goodwill and amortize it over a period of time as provided by law if the cost of the merger exceeds the fair value of the net identifiable assets, provided that the company demonstrates the reasonable business purpose of the merger, the cost of the merger and submits the documents supporting the fair value of the net identifiable assets in addition to filling out the Goodwill Verification Checklist.
For further information, please contact:
Connie Huang, Partner, Tsar & Tsai Law Firm
ConnieHuang@TsarTsai.com.tw
