Research the FASB Codification on accounting for goodwill Ol

Research the FASB Codification on accounting for goodwill. Olympus used Japanese

GAAP to compute goodwill. Specifically, the fees paid to advisers and M&A consultants

($660 million) were capitalized as part of the acquisition cost, and would be amortized over

a period of 20 years under Japanese GAAP. Would the accounting treatment be similar or

different under (a) U.S. GAAP, and (b) IFRS?

Solution

No. Under both US GAAP and IFRS these fees would be treated as expenses.

in the period in which they were incurred.