A major argument in favor of the immediate write-off approach to goodwill is that

Name: A major argument in favor of the immediate write-off approach to goodwill is that
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Goodwill is an intangible asset whose value cannot be precisely determined and its value may not necessarily have a predictive relationship with the cost of acquisition. Therefore, the immediate write-off approach to goodwill recognizes the uncertainty of its future economic benefit and avoids distorting the financial statements.

A Major Argument in Favor of the Immediate Write-Off Approach