While large public companies must amortize goodwill, the GAAP framework for small- and medium-size companies does not allow their goodwill to be amortized.

Question

Quizplus · Accepted Answer

Under GAAP, both large public companies and small- and medium-sized entities are allowed to amortize goodwill over a period not to exceed 10 years, reflecting a change aimed at simplifying accounting practices for smaller entities.

While Large Public Companies Must Amortize Goodwill, the GAAP Framework