Paragraph 43 of FASB Statement No. 141, "Business Combination," reads in part as follows:

The excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed shall be recognized as an asset referred to as goodwill.

What deficiencies, if any, do you perceive in the foregoing definition of goodwill? Explain.

Question

Quizplus · Accepted Answer

The Answer of Paragraph 43 of FASB Statement No. 141, "Business Combination," reads in part as follows: The excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed shall be recognized as an asset referred to as goodwill. What deficiencies, if any, do you perceive in the foregoing definition of goodwill? Explain.

Paragraph 43 of FASB Statement No