Internally generated goodwill is not recorded by accountants because:

Question

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Internally generated goodwill is not recorded by accountants because it cannot be measured reliably. Goodwill arises from factors such as the company's reputation, customer base, and employee talent. These factors are difficult to quantify and measure objectively, making it challenging to record internally generated goodwill accurately on the financial statements. As a result, accounting standards require that internally generated goodwill be excluded from the financial statements.

Internally Generated Goodwill Is Not Recorded by Accountants Because