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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- Three '11
- Balance Sheet, internally generated goodwill