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GAAP goodwill

Under GAAP goodwill is recorded when purchased.
Explain your analysis in detail:
? Present arguments in favor of the capitalization of "purchased" goodwill. You may consider tying your arguments to theories of capital maintenance and or the conceptual Framework.
? Present arguments against the capitalization of "purchased" goodwill. You may consider tying your arguments to theories of capital maintenance and or the conceptual Framework.

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Under GAAP goodwill is recorded when purchased.
Explain your analysis in detail:
? Present arguments in favor of the capitalization of "purchased" goodwill. You may consider tying your arguments to theories of capital maintenance and or the conceptual Framework.
Purchased goodwill should be capitalized for several reasons. The reason is that goodwill does not decrease in value. The typical factors that contribute to goodwill are excellent managerial ability, good name, reputation, and excellent personnel. The conceptual framework is that the factors that contribute to goodwill do not decline in value and so should be capitalized. There are a host of reasons why ...

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This solution gives you a detailed discussion on GAAP goodwill

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