AASB 138 describes the distinction between the treatment of internally generated goodwill and purchased goodwill (as well as other intangibles)as arising because:

Question

Quizplus · Accepted Answer

AASB 138 distinguishes between the treatment of internally generated goodwill and purchased goodwill because internally generated goodwill cannot be reliably measured. Purchased goodwill arises from an acquisition and can be reliably measured and recognized as an asset on the balance sheet. However, internally generated goodwill cannot be recognized as an asset on the balance sheet because its value cannot be reliably measured.

AASB 138 Describes the Distinction Between the Treatment of Internally