Write off of Goodwill


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I have been asked to dispose of Goodwill as the item has been sitting in the BS for years evading the auditors but the time has come to write it off but wanted to double check if my journal entries are correct.
Goodwill cost = £210,000
Goodwill amortisation charge = £152250
We have several account in the balance sheet which I suspect are all relics from a very old chart of accounts and as far I know have never been used. I know from disposing of fixed assets with similar accounts we don't like to use this as my boss likes the BS to be tidy.
Goodwill disposal
Goodwill Amortisation on Goodwill Disposed
Based on this would it be correct that I can just
CR Goodwill cost £210,000
DR Goodwill Amortisation Charge £152250
DR profit/loss on Disposal (P&L) £57,750 - I am not sure as I can see no other account specifically for profit/loss on Goodwill (In the past with disposal of FA's my boss has preferred any profit/loss to be posted to the depreciation charge in the P&L rather than profit/loss account though I don't quite understand why).
Thanks
 
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Counterofbeans

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Before I even get into this, the first question to be asked is whether you have tested the goodwill for impairment, which is usually done on no less than an annual basis.
 
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Hi Counterofbeans,

Unfortunately this has not been done for the past five years. Oh dear not a good start to the problem.

Thanks
 

Counterofbeans

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Question 1: Why are you writing it off then? How can management determine that it is impaired?

Although, it sounds like the balance is wholly immaterial if it's "evaded" the auditors for years.
 
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Thanks Counterofbeans, I have just written off the amount without any explanation from management. As usual I am supposed to ask no questions.
 
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Counterofbeans

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Thanks Counterofbeans, I have just written off the amount without any explanation from management. As usual I am supposed to ask no questions.
Not trying to cause any problems, but I'd be very concerned about that. The controller (or whoever) recording JEs without any understanding about why they are recording it is ripe for issues. In my mind, you have a right to know why you are recording anything in the G/L.
 
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