Goodwill is reported on a consolidated statement of financial position only if it was acquired in the merger or acquisition.

Question

Quizplus · Accepted Answer

Goodwill is only reported on a consolidated statement of financial position if it was acquired in the merger or acquisition as a result of the excess cost paid over the fair value of the net assets acquired. If there was no excess cost, or if goodwill has been impaired, it may not be included in the consolidated statement of financial position.

Goodwill Is Reported on a Consolidated Statement of Financial Position