There are two international standards which deal with goodwill. IAS38 does not allow internally generated goodwill to be recognised as an asset. Goodwill acquired in a business combination is dealt with by IFRS3.
(a) Define the term "goodwill" and explain why internally generated goodwill may not be recognised as an asset.
(b) Explain how goodwill acquired in a business combination should be measured at initial recognition and in subsequent accounting periods.
(c) Explain the accounting treatment which should be applied if goodwill acquired in a business combination appears to have a negative value.
(d) List the main disclosures required by IFRS3 in relation to goodwill.