A goodwill whose accounting is carried out on a tax basis. In acquisition accounting, goodwill amortization, in some jurisdictions, is deductible for tax purposes, thus giving rise to deferred taxes. If there is a difference between the reported amount of goodwill and the tax-basis goodwill, treatment would depend on whether tax-deductible goodwill is larger or smaller than book goodwill. Generally, if tax-deductible goodwill is larger, a deferred tax asset (DTA) is recognized. In the opposite case, no deferred tax liability (DTL) is recorded for the goodwill basis difference.
Accounting
[related_posts_by_tax title="See also" posts_per_page="10" taxonomies="post_tag"]
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