Goodwill arises at acquisition date when the purchase price exceeds the identifiable assets acquired and the liabilities assumed.

Question

Quizplus · Accepted Answer

Goodwill is an intangible asset that represents the excess of the purchase price over the identifiable assets acquired and liabilities assumed in a business combination. Therefore, goodwill arises at the acquisition date when the purchase price exceeds the identifiable assets and liabilities of the acquired business.

Goodwill Arises at Acquisition Date When the Purchase Price Exceeds