In the acquisition method for a business combination, the excess of the fair value of the consideration over the fair value of the acquired firm's identifiable assets net of identifiable liabilities is goodwill.

Question

Quizplus · Accepted Answer

This statement is true. Goodwill is the amount that exceeds the fair value of the consideration paid in a business combination over the fair value of the acquired firm's identifiable assets net of identifiable liabilities.

In the Acquisition Method for a Business Combination, the Excess