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Unformatted text preview: detailed explanation for the sudden shift in policy. 1 Do you think that this treatment would be allowed under U.S. GAAP? Answer: The write-down of assets would have been allowed if it could be shown that the assets had declined in value (an impairment). However, the creation of goodwill to offset the write-down would not have been allowed. Goodwill can be recorded only when it results from the acquisition of a business. It cannot be recorded as the result of being created internally Source: Andrew Morse and Yukari Iwatani Kane, Softbank's Accounting Shift Raises Eyebrows, Wall Street Journal (August 28, 2007), p. C1....
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- Spring '11