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Unformatted text preview: less. This presumption may be rebutted
and a useful economic lfe regarded as a longer period or indefinite only if:
(a) The durability of the acquired business or intangible asset can be demonstrated and
justifies estimating the useful economic life to exceed 20 years; and
(b) The goodwill or intangible asset is capable of continued measurement (so that annual
impairment reviews will be feasible).
Goodwill and intangible assets that are amortized over a period exceeding 20 years from the
date of acquisition or are not amortized should be reviewed for impairment at the end of each
The source of most disagreement in the goodwill debate has centered on which of two
accounting treatments should be used to account for purchased goodwill. The two methods
- Goodwill should be treated as an asset and written off over its expected useful life
through the profit and loss account.
- Goodwill should not be treated as an asset, but should be written off against reserves in
the year of acquisition.
Prior to the publication of FRS 10, SSAP...
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This note was uploaded on 05/02/2013 for the course ECONOMIC economics taught by Professor Economics during the Fall '13 term at Elmont Memorial High School.
- Fall '13
- The Land