Accounting Treatment of Goodwill

Fundamentally, FAS 142 rejects the idea that all intangible assets are necessarily "wasting" assets. Under FAS 142, goodwill and intangible assets that have indefinite useful lives will not be amortized over a theoretical fixed lifetime. Instead, they will be tested annually for impairment û with the exception of intangible assets that are identified as having finite useful lives that will continue to be amortized, but without the constraint of an arbitrary maximum useful life of forty years. Under FAS 142, goodwill and other intangibles will still be recognized as assets. Impairment testing will be done using a two-step process. The first step involves reviewing the

assets in question for impairment.

Impairment means a decrease in value. The second step involves a determination of the dollar amount of any such impairm

. . .
Some common words found in the essay are:
Fundamentally FAS, Exchange Commission, Standards Board, Sever Hauser, Intangible Assets, Steering Committee, Online Available, Commission SEC, intangible assets, Task Force, goodwill intangible assets, fas 142, goodwill intangible, Accountants AICPA, financial accounting, financial statements, accounting standards, financial accounting standards, accounting standards board, standards board, acquired goodwill, assets acquired, book value, 142 goodwill intangible, value acquired goodwill,
Approximate Word count = 1124
Approximate Pages = 4 (250 words per page)

More Essays on Accounting Treatment of Goodwill