Because goodwill is unidentifiable, it cannot be recognised as an asset.

Name: Because goodwill is unidentifiable, it cannot be recognised as an asset.
Brand: Quizplus
Rating: 4.9 (48 reviews)

Question

Quizplus · Accepted Answer

Goodwill can be recognized as an asset on a company's balance sheet only when it can be identified and measured reliably, such as in cases where it has been acquired through a business combination. However, in cases where goodwill cannot be reliably identified and measured, it cannot be recognized as an asset.

Because Goodwill Is Unidentifiable, It Cannot Be Recognised as an Asset