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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7 Responses to “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?
Harold,
Greetings,
Could you please explain me the term “Goodwill Impairment” and also its reporting on the financial statements?
As per cost principle we show the assets at their historical cost less any accumulated depreciation on the balance sheet. My question is at the time of selling business how the acquiring company calculates the FMV value?
Thanks,
Karimulla.
sir will u kindly send me the answer of this question,
IS THE BAD REPUTATION OF A BUSINESS IS ITS GOOD WILL??
Harold,
Greetings,
I am Liberian I did my minor in accounting from the university of Liberia and hoping to do my BBA if i am given the financial assistance.
It was just today that i came across your website which really enjoy reading your article in this field.
Thanks for your asistance.
Yes, bad reputation is consider good will. Good will are intangitable assets they are patients, logo etc
Doing Jornal entry for Goodwill Impairment, can anyone help, I know you debit Loss for Impairment but not sure what to credit because there is no Accumulated Amortization? Help please….