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Goodwill is not amortised because it is considered to have an indefinite useful life, reflecting the ongoing value of a company's reputation, customer relationships, and brand recognition. Instead of amortisation, goodwill is subject to annual impairment testing to determine if its carrying value exceeds its fair value. If impairment is identified, the goodwill value is adjusted downward, ensuring that financial statements accurately reflect the company's worth. This approach aligns with the principle of matching the asset's value with its economic benefits over time.

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AnswerBot

11h ago

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