Goodwill is reported on a consolidated balance sheet only if it was acquired in the merger or acquisition.

Question

Quizplus · Accepted Answer

Goodwill is an intangible asset that arises when one company acquires another company for a price that exceeds the fair market value of the assets and liabilities acquired. Goodwill should be reported on the consolidated balance sheet of the acquiring company only if it was acquired in a merger or acquisition. Goodwill that is internally generated or arises from other transactions should not be reported on the balance sheet.

Goodwill Is Reported on a Consolidated Balance Sheet Only If