While large public companies are not allowed to amortize goodwill, the GAAP framework for small- and medium-size companies require goodwill to be amortized.

Question

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Under the GAAP framework, small- and medium-sized entities (SMEs) have the option to amortize goodwill over a period of time, typically not exceeding ten years, as part of the accounting standards for private companies, whereas large public companies are required to annually test goodwill for impairment rather than amortize it.

While Large Public Companies Are Not Allowed to Amortize Goodwill