When consolidating parent and subsidiary financial statement

When consolidating parent and subsidiary financial statements, which of the following statements is true? Multiple Choice Goodwill is never recognized. Goodwill required is amortized over 20 years Goodwill may be recorded on the parent company\'s books The value of any goodwill should be tested annually for impairment in value. Goodwill should be expensed in the year of acquisition.

Solution

The value of any goodwill should be tested annually for impairment in value-answer

According to GAAP regarding amortization of goodwill-Goodwill recognized in consolidation will not be amortized but subject to an annual test for impairment.

The value of any goodwill should be tested annually for impairment in value-answer According to GAAP regarding amortization of goodwill-Goodwill recognized in consolidation will not be amortized but subject to an annual test for impairment.