ABSTRACT
GOODWILL AND INTANGIBLE ASSETS We have seen that the group balance sheet shows goodwill ‘at cost’ under intangible fixed assets. The amount is the excess of the acquisition price paid over the fair value of the separable net assets acquired. Normal practice is for group accounts to amortize goodwill (by the straight line method, with zero residual value) over its expected economic life, up to a maximum of twenty years [FRS 10/IAS 22].
