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From what I've read about U.S. GAAP, goodwill is the amount a company pays to acquire another company minus the acquired company's book value. Since book value excludes intangible assets, that would mean that all of the acquired company's intangible assets would get converted to "goodwill" (again, as far as I understand it). Is that how it works under IFRS as well? I am specifically curious as to how it works in the UK, if that makes any difference.
in IAS 38 - Intangible Assets by

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IFRS Goodwill calculation in its simplest form:

Goodwill = Consideration transferred - Net assets recognized

What sort of intangible assets are you referring? Internally generated intangible assets are anyway not recognized under IFRS
by Level 2 Member (4.3k points)
I was referring to things like software created to sell, and other things that meet the  "Recognition criteria" mentioned about halfway down the page at https://www.iasplus.com/en/standards/ias/ias38. Are intangibles ever included in Net Assets Recognized? For example, looking at the annual report for Sky (https://corporate.sky.com/documents/annual-report-2016/consolidated-financial-statements.pdf) I see they have 4.7 billion in goodwill, and 4.4 billion in other intangible assets, so they had to come from somewhere.

Looking at the IAS 38 link I referred to above, I see the following: "An expenditure (included in the cost of acquisition) on an intangible item that does not meet both the definition of and recognition criteria for an intangible asset should form part of the amount attributed to the goodwill recognised at the acquisition date." So if I  understand that correctly, I guess that answers my original question; not all intangibles are converted to goodwill in an acquisition. Though from your comments regarding internally generated intangible assets, I am now wondering if intangibles are indeed *only* created upon acquisition?
The IASB are currently reviewing the position of goodwill.  There are obvious examples where, on acquisition, one company may pay more than another company's tangible assets.  For example, to control a competitor or other strategic reasons.  I anticipate the IASB will issue a paper on proposed changes sometime in 2018