U. S. GAAP requires that a company should capitalize goodwill and adjust its value if subject to impairment.

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This statement is true. Under U.S. GAAP, goodwill is capitalized and subject to impairment testing at least annually or when certain events occur that may indicate impairment. Impairment occurs when the carrying value of the goodwill exceeds its fair value. If impairment is indicated, the company must adjust the value of goodwill and recognize the impairment loss on its income statement.

U S GAAP Requires That a Company Should Capitalize Goodwill and and Adjust