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?
Goodwill Question
Answers
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.