Dangling debit is an accounting term describing a practice where companies wrote off goodwill to reserves, creating a goodwill account deducted from the total shareholders' funds; a practice discontinued under Financial Reporting Standard (FRS) 10.
A special reserve used for accounting purposes to handle the write-off of goodwill from the balance sheet. This reserve has a particular debit balance and serves as a tool for managing potential overvaluations in the goodwill asset.
