Accounting for IGCSE & O level - Final Statements (Section 13 - No. 45)

What is the treatment of goodwill in a statement of financial position?

It is always excluded.

It is only included if it's the result of an acquisition.

It is calculated by the company itself and recognized.

It's the same as an intangible asset, and there is not a separate rule.

Goodwill is recognized in the statement of financial position only when it is the result of an acquisition.