The statement concerning goodwill that is not correct is:
A)Goodwill can be recognised on the balance sheet only if it is purchased
B)Goodwill is calculated as the excess of the consideration paid for a business over the fair value of the net assets acquired
C)Goodwill can only be purchased when a business is acquired as a going concern
D)Goodwill represents the value of trademarks,brand names,patents,licences etc.

Question

Quizplus · Accepted Answer

Goodwill does not represent the value of identifiable intangible assets like trademarks, brand names, patents, or licenses; it represents the excess value paid over the fair value of net identifiable assets.

The Statement Concerning Goodwill That Is Not Correct Is