The excess of acquisition cost over the current value of the investee's identifiable net assets,referred to as goodwill,may not be recorded by the investor under current accounting principles.

Question

Quizplus · Accepted Answer

Under current accounting principles, goodwill must be recorded by the investor if the acquisition cost exceeds the fair value of the identifiable net assets acquired.

The Excess of Acquisition Cost Over the Current Value of the Investee's