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Goodwill Question

I just got hired into a company that is amortizing their goodwill by decreasing the goodwill account and increasing amortization expense, each month.

I've never had to deal with goodwill before, but I have a feeling it should be treated like any other intangible asset and the goodwill value is only adjusted when reevaluated annual (if required). Am I correct with this, or is this company correct in decrementing the actual asset?

Answers

Jake Feldman
Title: Managing Director
Company: Global TaxFin Advisory Group LLC
(Managing Director, Global TaxFin Advisory Group LLC) |

You're right and your company is right. How can that be??? :)

If you don't mind, I'll point you to nice summary link below, so I don't have to reinvent the wheel.

http://www.investopedia.com/ask/answers/010815/how-does-goodwill-amortize.asp?lgl=lg-mt

You're right that rules now lean towards impairment test but your company may also qualify to use old fashioned amortization.

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