Goodwill within operating segments can be offset (netted).

Question

Quizplus · Accepted Answer

Goodwill within operating segments can indeed be offset or netted. This means that if a company has goodwill in one operating segment and a corresponding amount of negative goodwill (also known as a bargain purchase) in another operating segment, the two amounts can be netted against each other to reduce the amount of overall goodwill on the company's balance sheet. This offsetting is only allowed within operating segments, not between them.

Goodwill Within Operating Segments Can Be Offset (Netted)