Goodwill arising from a business combination is
A)charged to Retained Earnings after the acquisition is completed.
B)amortized over 40 years or its useful life,whichever is longer.
C)amortized over 40 years or its useful life,whichever is shorter.
D)never amortized.

Question

Quizplus · Accepted Answer

Goodwill arising from a business combination is no longer amortized, but is instead tested for impairment at least annually. This change was made under the accounting standard update ASU 2017-04. Prior to the update, goodwill was amortized over a period of 40 years or its useful life, whichever was shorter.

Goodwill Arising from a Business Combination Is