Accounting for purchased goodwill has been a controversial issue for many years In the United States, the amount of purchased goodwill is capitalized and not amortized Globally, the treatment of goodwill varies significantly, with some countries not recognizing goodwill as an asset Professors Johns...

Requirement 1 The FASB has tentatively decided that purchased goodwill does meet the criteri ...

Accounting for purchased goodwill has been a controversial issue for many years. In the United States, the

Question:

Accounting for purchased has been a controversial issue for many years. In the United States, the amount of purchased is capitalized and not amortized. Globally, the treatment of varies significantly, with some countries not recognizing as an asset. Professors Johnson and Petrone, in “Is Goodwill an Asset?” discuss this issue.

Required:
1. Does meet the FASB's definition of an asset?
2. What are the key concerns of those that believe is not an asset?

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...