Goodwill in case of partnership

what is the logic of...
not to show goodwill in BOA...
In case of partnership...
Please explain in detail
Replies (2)
Quick Summary
This discussion clarifies why goodwill isn't typically shown on a Balance Sheet for partnerships. It explains that goodwill is subjective and only purchased goodwill, a financial transaction, is recorded. Unlike recall value, recorded goodwill is subject to annual impairment testing.

Goodwill is a subjective concept. The value of goodwill varies from one person/valuer to another person/valuer. Goodwill Is different from Recall Value. The Company "Nestle" for example has a good recall value but does not mean it also has goodwill. As per Accounting standards, only purchased goodwill is recorded in the books of accounts as it a financial transaction and not a valuation report just for the sake of measuring goodwill on voluntary basis. Goodwill recorded in BOA is subject to annual impairment testing.
Okay....got it...thank you very much sir...

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