Goodwill no longer has to be amortized over its projected life, but it must be written off if it is deemed to have been impaired. Impairment reviews are to be taken annually or whenever the firm has experienced an event which materially affects the value of its assets.

Question

Quizplus · Accepted Answer

This is accurate according to accounting standards for goodwill. Goodwill is no longer subject to amortization, but it must be regularly reviewed for potential impairment. If an impairment is identified, the goodwill must be written off as a loss on the company's income statement. Impairment reviews are required at least annually, and also whenever there is a trigger event that could impact the value of the goodwill.

Goodwill No Longer Has to Be Amortized Over Its Projected