Asked by Mariam Jaser on May 17, 2024
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Goodwill is measured as the difference between book values and fair values
of the net identifiable assets acquired from the cost of acquisition.
Goodwill
An intangible asset that arises when a business is acquired for more than the fair value of its tangible and identifiable intangible assets.
Book Values
The value of an asset as it appears on a company's balance sheet, calculated as the cost of the asset minus any depreciation or amortization.
Fair Values
An estimate of the market value of an asset or liability, based on current prices in an active market.
- Acquire knowledge on how the expenses of business combinations are allocated and how goodwill is recognized.
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Learning Objectives
- Acquire knowledge on how the expenses of business combinations are allocated and how goodwill is recognized.
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