After initial recognition,goodwill is measured in which of the following ways?
A) at cost
B) at fair value
C) at cost less accumulated impairment losses
D) at cost less accumulated amortisation

Question

Quizplus · Accepted Answer

After initial recognition, goodwill is measured at cost less accumulated impairment losses. This is because the value of goodwill may decrease over time due to changes in the business environment, and impairment losses are recognized in the financial statements to reflect this. The other options - fair value, cost, and cost less accumulated amortisation - are not correct as they do not reflect the actual value of goodwill over time.

After Initial Recognition,goodwill Is Measured in Which of the Following