Accounting for acquired goodwill has been a controversial issue for many years In the United States, the amount of acquired goodwill is capitalized and not amortized Globally, the treatment of goodwill varies significantly, with some countries not recognizing goodwill as an asset Professors Johnson and Petrone, in Is Goodwill an Asset discuss this issue Required 1 Does goodwill meet the FASBs definition of an asset 2 What are the key concerns of those that believe goodwill is not an asset

Question: Accounting for acquired goodwill has been a controversial issue for many years. In the United States, the amount of acquired goodwill is capitalized and not

Accounting for acquired has been a controversial issue for many years. In the United States, the amount of acquired is capitalized and not amortized. Globally, the treatment of varies significantly, with some countries not recognizing as an asset. Professors Johnson and Petrone, in “Is Goodwill an Asset?” discuss this issue.

Required:
1. Does meet the FASB’s definition of an asset?
2. What are the key concerns of those that believe is not an asset?

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