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Question : Which statements is not true with respect to AS-26? 

Option 1: Purchased goodwill can be shown in the Balance Sheet assets side. 

Option 2: Revalued goodwill can be shown in the Balance Sheet 

Option 3: Both purchased goodwill and revalued can be shown in the Balance Sheet 

Option 4: None of the above 


Team Careers360 11th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: Revalued goodwill can be shown in the Balance Sheet


Solution : Answer = Revalued goodwill can be shown in the Balance Sheet

The statement "Revalued goodwill can be shown in the Balance Sheet" is not true with respect to AS-26. According to AS-26, only purchased goodwill can be shown in the Balance Sheet assets side. Revalued goodwill is not recognized because goodwill is considered to have an indefinite useful life and is not subject to revaluation.
Hence, the correct option is 2.

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