A major argument in favor of setting up goodwill as an asset with amortization is that

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Goodwill is a cost of resources that will be used up over time, and setting it up as an asset with amortization allows companies to spread out the cost over a certain period rather than recognizing it all at once. This is in accordance with the matching principle, which states that expenses should be recognized in the same accounting period as the revenues they help to generate. By amortizing goodwill, companies are able to more accurately reflect the expense associated with the acquisition over the useful life of the asset.

A Major Argument in Favor of Setting Up Goodwill as an Asset