I mean how can goodwill be amortized? That’s even more wrong than monthly testing for impairment. Did anybody come aross this question? What do you think? Question 22 - #27439 Which of the following methods is NOT a valid method of accounting for goodwill? A) Not amortized. B) Amortized over a specified period of time. C) Subject to a monthly impairment test. D) Fully deducted against equity immediately. Your answer: A was incorrect. The correct answer was C) Subject to a monthly impairment test. The impairment test is annual, not monthly. The other three methods are possible, including not amortizing goodwill if it can be reasonably shown that goodwill has not lost its value (i.e. revenue-generating ability). This question tested from Session 11, Reading 40, LOS a
goodwill can be amortized under some international countrie’s accounting standards - not IAS though
Yeah, that question is BS. Some national standards allow for goodwill amortization (just not IAS or US GAAP). The impairment test can’t be monthly because financial reports aren’t issued on a monthly basis.