The accounting for goodwill is controversial. Some believe that goodwill's value eventually disappears. Therefore, they...
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Accounting
The accounting for goodwill is controversial. Some believe that goodwill's value eventually disappears. Therefore, they argue, companies should charge goodwill to expense over the periods affected, to better match expense with revenues. Others note that the accounting treatment for purchased goodwill and goodwill created internally should be consistent. They point out that companies immediately expense goodwill created internally and should follow the treatment for purchased goodwill.
The accounting for goodwill is controversial. Some believe that goodwill's value eventually disappears. Therefore, they argue, companies should charge goodwill to expense over the periods affected, to better match expense with revenues.
Others note that the accounting treatment for purchased goodwill and goodwill created internally should be consistent. They point out that companies immediately expense goodwill created internally and should follow the treatment for purchased goodwill.
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