Which of the following statements concerning internally developed goodwill is true?
A)It is a separately identifiable asset.
B)It is capitalized at its cost.
C)The costs associated with its development are expensed as incurred.
D)Measuring its value is relatively easy and reliable.

Question

Quizplus · Accepted Answer

Internally developed goodwill does not meet the criteria for a separately identifiable asset and cannot be capitalized. Instead, the costs associated with its development are expensed as incurred. Measuring the value of internally developed goodwill is also subjective and not easy or reliable.

Which of the Following Statements Concerning Internally Developed Goodwill Is