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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 896 |
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How could they test it from impairment if they could not compute for the goodwill’s own cash flows because of its attachment to the entity? If they could compute it in enterprise wide basis, they could combine it with the entity’s own internally generated goodwill. Which is why, if not eliminated, they consider goodwill to be amortized...
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Which is why, if not eliminated, they consider goodwill to be amortized. On the other hand, amortization is another argument because how could we count its useful life that we know in fact that it has an indefinite life, that as long as the company is standing so as the goodwill be. They consider it as arbitrary and therefore inaccurate if presented in the financial statements...
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