After initial recognition,goodwill is measured in which of the following ways?
A) At cost.
B) At fair value.
C) At cost less accumulated impairment losses.
D) At cost less accumulated amortisation.
E) In any of the ways mentioned above, at the discretion of entity management.

Question

Quizplus · Accepted Answer

Goodwill is measured at cost less accumulated impairment losses. This is because goodwill is not an asset that can be easily valued and amortized over a certain period of time. Therefore, it is tested annually for impairment and any loss in its value is recognized in the financial statements.

After Initial Recognition,goodwill Is Measured in Which of the Following