Competition among acquiring firms to make a corporate acquisition may result in the successful firm paying more

Question:

Competition among acquiring firms to make a corporate acquisition may result in the successful firm paying more than the fair value of another firm. The acquiring firm will allocate the excess purchase price to goodwill, along with amounts attributable to unidentifiable intangible benefits. Because U.S. and IFRS do not require firms to amortize goodwill, the excess purchase price will not affect net income. Do u agree? Why or why not?

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...