Asked by Gisselle Ochoa on Apr 24, 2024
Verified
Goodwill is not an identifiable intangible asset because it is not separable.
Goodwill
An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets.
Intangible Asset
An asset that lacks physical substance, such as intellectual property or brand recognition.
Identifiable
Able to be recognized or distinguished as separate from other assets or liabilities within a company.
- Understand the concept and calculation of goodwill in the context of acquisitions and consolidations.
Verified Answer
JM
Jolene MaciasMay 02, 2024
Final Answer :
True
Explanation :
Goodwill is not separately identifiable from other assets and liabilities of a business. Therefore, it cannot be recognized as an intangible asset on a company's balance sheet.
Learning Objectives
- Understand the concept and calculation of goodwill in the context of acquisitions and consolidations.
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