Unformatted text preview: the calculation of the value of goodwill is outlined in the current standards: (1) Goodwill, once impaired, can never be restored. (2) Impairment is calculated by forecasting which creates uncertainty and risk, thus unreliable. (3) Goodwill is allocated to each CGU when using the impairment method. (4) Impossible to account for goodwill within the context of the historical cost system. The ‘double account’ concept divides the conventional balance sheet into two sections dealing with both assets and liabilities. By adopting this concept, the MCS has modified it to produce useful and integrated information concerning for both purchased and internally generated goodwill only....
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This note was uploaded on 03/05/2012 for the course ACCT 2542 taught by Professor Knapp during the Three '11 term at University of New South Wales.
- Three '11