Which of the following statements best describes the current treatment of negative Goodwill in Canada and the U.S?
A)A reduction of assets with any unallocated portion appearing on the Income Statement as an extraordinary item.
B)A reduction of assets with any unallocated portion to be amortized over a maximum of forty years.
C)An increase in liabilities with any unallocated portion appearing on the Income Statement as an extraordinary item.
D)An increase in liabilities with any unallocated portion to be amortized over a maximum of forty years.

Question

Quizplus · Accepted Answer

In both Canada and the U.S., negative goodwill is treated as a reduction of assets, and any unallocated portion is recognized immediately in the income statement, not as an extraordinary item but as a gain.

Which of the Following Statements Best Describes the Current Treatment