There are two international standards which deal with goodwill. IAS38 does not allow internally generated goodwill to
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There are two international standards which deal with goodwill. IAS38 does not allow internally generated goodwill to be recognized 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 recognized 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.
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a Goodwill is defined by IFRS3 as an asset representing the future economic benefits arising from as...View the full answer
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