In the CPA Canada Handbook, Section 3064, the amortization of goodwill is not permitted, although if the fair value of the goodwill drops, the loss in value is to be recognized on the income statement.

Question

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The statement is correct. According to the CPA Canada Handbook, Section 3064, goodwill should not be amortized, but any potential loss in value should be recognized on the income statement.

In the CPA Canada Handbook, Section 3064, the Amortization of Goodwill