Mandy Sager

Document Type

Honors Project

First Advisor

Martha Armstrong

Degree Award Date

Spring 2002


Elimination, Goodwill Amortization, literature review, interviews, certified public accountants


Accounting | Business


The Financial Accounting Standards Board's Statement no. 142, Accounting for Goodwill and Intangible Assets, eliminated the amortization of goodwill in business combinations. With the new standard, a purchase accounting method for business combinations requires companies to annually perform a goodwill impairment test based on the fair value of the reporting unit. This new standard has generated considerable changes for many companies. intend to address those changes by presenting viewpoints of certified public accountants with whom I have interviewed. Additionally, I plan to discuss the implementation of the new standard as well as the effects of implementation by focusing on the underlying issues concerned with this new adjustment in accounting for purchased goodwill. Articles from academic journals, textbooks from accounting classes, and interviews with certified public accountants will be my primary sources of research and information.