You are the Chief Accountant of Rusty Ltd. In July 2023, Ruby Ltd returns to profitability quicker than expected, and hence, the Board of directors of Rusty Ltd is proposing to revalue the previously acquired goodwill upwards (effectively reversing the previous write down which is zero goodwill) by $100,000.

REQUIRED:

As the Chief Accountant of Rusty Ltd, you need to provide a briefing paper and recommendation (Max 1000 words) explaining the full accounting implications, e.g., the relevant journal entries, any tax implications, and the effect on the financial statements of the proposed upward revaluation.