U.S.GAAP requires the immediate write-off of goodwill at purchase.

Question

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U.S.GAAP (Generally Accepted Accounting Principles) requires that goodwill be tested for impairment at least annually and written down if it has lost value, but not immediately written off at purchase. The write-off of goodwill only occurs in certain circumstances, such as in a business combination where there is evidence of goodwill impairment or when a business is sold.

U.S.GAAP Requires the Immediate Write-Off of Goodwill at Purchase