dangling debit
A debit balance on goodwill account deducted from shareholders' funds instead of being shown as an asset. Rather than show the balance of purchased goodwill as an asset, some companies choose to write it off immediately after an acquisition to a negative reserve or dangling debit account.
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • Dangling Debit — A debit entry with no offsetting credit entry. Dangling debit occurs when a company purchases goodwill or services to create a debit. When adding the journal entry to financial statements a corresponding credit balance is not reported and cannot… …   Investment dictionary

  • dangling debit — A practice in which companies wrote off goodwill to reserves and created a goodwill account, which was deducted from the total of shareholders funds. This treatment is no longer possible under Financial Reporting Standard 10 …   Accounting dictionary

  • dangling debit — An accounting practice in which companies wrote off goodwill to reserves and created a goodwill account, which was deducted from the total of shareholders funds. This treatment is no longer permitted in the UK …   Big dictionary of business and management

  • goodwill write-off reserve — A special reserve against which to place a goodwill write off. The reserve has a debit balance and is referred to as the dangling debit …   Accounting dictionary

  • goodwill — good·will / gu̇d ˌwil/ n 1: an intangible asset that is made up of the favor or prestige which a business has acquired beyond the mere value of what it sells due to the personality or experience of those conducting it, their reputation for skill… …   Law dictionary

  • The Hitchhiker's Guide to the Galaxy Primary and Secondary Phases — The terms Primary Phase and Secondary Phase describe the first two radio series of The Hitchhiker s Guide to the Galaxy . [The spelling of Hitchhiker s Guide has varied in different editions. For consistency this article always spells it this way …   Wikipedia

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