Under the current GAAP,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

Under current GAAP, goodwill arising from a business combination is not amortized but is subject to an annual impairment test. This means that the value of goodwill is not reduced over time, but if its value decreases below its carrying amount, an impairment loss must be recognized.

Under the Current GAAP,Goodwill Arising from a Business Combination Is