Under current U.S. GAAP, goodwill is recorded when purchased.
Referencing the theory of capital maintenance, and/or...
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Accounting
Under current U.S. GAAP, goodwill is recorded when purchased.Referencing the theory of capital maintenance, and/or theconceptual framework, should purchased goodwill be capitalized?
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According to US GAAP Goodwill is recorded as the excess of the cost of an aquisition price over the fair value of the aquired net assetsIt is written down only when the carrying amount of goodwill exceeds its implied fair valueTo test goodwill for impairment companies must first assign purchased goodwill to reporting unitsBefore the new accounting treatment companies generally recorded goodwill in total and did not assign it individual reportings units Goodwill is measured as the excess of the cost of an aquisition price ver the fair value of aquired net assets Impairment
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