How do you amortize goodwill?
Prior to 2001, the U.S. accounting rules required goodwill to be amortized to expense over a period not to exceed 40 years. However, in June 2001 the Financial Accounting Standards Board issued its Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets. This accounting pronouncement ended the automatic amortization of goodwill to expense for U.S. financial reporting.
While goodwill is no longer amortized to expense in uniform increments, goodwill is to be measured annually to determine if there is an impairment loss.
To learn more about the current U.S. accounting for goodwill, go to the FASB’s free website www.FASB.org/st and scroll to Statement No. 142.
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How do you amortize goodwill?
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thank you sir i have received some accounting questions
Good reply, I might say. Here’s another question, how do you account for goodwill for a company that was incorporated two years ago given its paid up share capital as at March 2008 is 14 million?