Goodwill Accounting Treatment

 


 

An asset according to IAS 16 defined it has a resources controlled by an entity in which there will be an economic outflow. Goodwill is defined has the excess over the fair value. According to IAS 38 (Intangible asset) it is defined as asset without physical substance. 

If an assets meets IAS 38 criteria, it is treated as a non current asset in the financial statement. Internally generated Goodwill are prohibited under IAS 38.Is Goodwill An Asset

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