According to GAAP, goodwill is:
A)amortized every year.
B)recorded as a gain only when the goodwill is gaining value.
C)recorded as a loss only when the goodwill is losing value.
D)amortized like other intangible assets.

Question

Quizplus · Accepted Answer

Goodwill is not amortized under GAAP. Instead, it is tested annually for impairment. If the carrying amount of goodwill exceeds its fair value, an impairment loss is recognized.

According to GAAP, Goodwill Is