Accounting principles require goodwill arising from acquisitions to be amortized over the lesser of the estimated undiscounted cash flows at the operating unit level or 20 years.

Question

Quizplus · Accepted Answer

Accounting principles require goodwill arising from acquisitions to be tested for impairment annually and written down if its carrying amount exceeds its fair value. There is no requirement to amortize goodwill over a specific time period.

Accounting Principles Require Goodwill Arising from Acquisitions to Be Amortized