alleryStart learning →How does AS 26 treat internally generated goodwill?
ARecognised at estimated fair value
BRecognised over five years
CRecognised once it is audited
DNot recognised as an asset
Answer & Solution
Correct answer: D. Not recognised as an asset
Internally generated goodwill is not an identifiable resource controlled by the enterprise whose cost can be measured reliably, so it is never booked.
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