The excess of acquisition cost over the current value of the investee's identifiable net assets, referred to as goodwill, may not be recorded by the investor under current generally accepted accounting principles.

Question

Quizplus · Accepted Answer

Under current generally accepted accounting principles (GAAP), the excess of acquisition cost over the current value of the investee's identifiable net assets, referred to as goodwill, is recorded by the investor and is not amortized but tested for impairment at least annually.

The Excess of Acquisition Cost Over the Current Value of the Investee's