Goodwill is initially recorded as:
A)the net amount of the recognised identifiable assets acquired and liabilities assumed
B)the excess of the net amount of the recognised identifiable assets acquired and liabilities assumed over the excess of the consideration transferred
C)the excess of the consideration transferred over the net amount of the recognised identifiable assets acquired and liabilities assumed
D)none of the above

Question

Quizplus · Accepted Answer

Goodwill is recorded as the excess of the consideration transferred over the net amount of the recognized identifiable assets acquired and liabilities assumed. This means that Goodwill is the amount paid for an acquisition that cannot be attributed to any specific asset or liability.

Goodwill Is Initially Recorded As