Overview
Impairment of Goodwill
(Make sure you incorporate what you have learned: Research, Critical Thinking, and Effective writing!)
Rubric:
Research capabilities, including citing relevant and accurate sources of evidence
Critical thinking, including understanding, comprehension and analyses of data and literature
Effective writing, including accurate, professional writing, and clear organization of the results
The accounting for goodwill is controversial. Some believe that goodwill's value eventually disappears. Therefore, they argue, companies should charge goodwill to expense over the periods affected, to better match expense with revenues.
Others note that the accounting treatment for purchased goodwill and goodwill created internally should be consistent. They point out that companies immediately expense goodwill created internally and should follow the treatment for purchased goodwill.
Document in writing, concisely and effectively, your professional opinion on this matter.