Which of the following statements concerning goodwill is true?
A) Internally generated goodwill cannot be recognised.
B) Goodwill must be tested for impairment at least annually.
C) Goodwill is an unidentifiable intangible asset.
D) All of the above.

Question

Quizplus · Accepted Answer

Goodwill is indeed an unidentifiable intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets. Internally generated goodwill cannot be recognized on the balance sheet according to accounting standards such as IFRS and GAAP. Additionally, goodwill must be tested for impairment at least annually, or more frequently if there are indications that it might be impaired.

Which of the Following Statements Concerning Goodwill Is True