Free to express own opinion

a)Define the term goodwill and distinguish between internally generated goodwill and goodwill acquired in business combination.

b)Explain why it is not logical to amortize goodwill arising from business combination.

c)State with rationale behind, how the accounting treatment of following expenditure in line with HKAS 38Intangible Assets.

I.Money spent on a joint project with an educational institution to study the potential use of carbon nanotubes for storage of digital data.

II.Expenditure on developing a new high speed hard disk which in the opinion of corporation, has assured and profitable market.But work has been suspended pending the development of a new glue suitable for the construction of the disk drives.