FRA : goodwill

Good Student
Posts: 31
Joined: Sat Mar 08, 2014 6:59 am

FRA : goodwill

Postby mehak.officiallink » Tue Nov 18, 2014 5:44 am

A company recorded rs. 200000 of goodwill in acquisition of competitor. Acquisition would provide benefits for 10 years. Will goodwill be amortised over 10 years ?

Finance Junkie
Posts: 704
Joined: Wed Apr 09, 2014 6:28 am

FRA : goodwill

Postby edupristine » Tue Nov 18, 2014 12:25 pm

How can acquisition would benefit any company for next 10 years.
Goodwill can't be amortized over a specific life it can only tested for impairment.
It is possible to amortized the intangible assets but except goodwill company can amortize patents, copyright( Because they have specific life for example 10, 20 years).

Posts: 1
Joined: Sun Apr 05, 2015 4:40 am

FRA : goodwill

Postby veerin2015 » Sun Apr 12, 2015 10:07 am

Good will increases as the business and its reputation grows , and vice versa . It comes in account only at the time of acquisition of the business . Its amortization cant be calculated .
If somebody come to buy your business , and if you are doing good , you would ask more than the net asset value of the company , thats the goodwill .

Return to “FRM Part II”



Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to and we will rectify it.