Technology-based companies


Especially in the last few decades, many especially technology-based companies have paid very high prices to acquire other technology companies, which has resulted in the recordation of a large amount of goodwill in the consolidated financial statements of the acquiring company.
Review the following two articles:
1) This first hyperlink is to an article in the CPA Journal that describes the historical development and evolution of goodwill accounting over the years through 2019:
2) The second hyperlink is to FASBs Technical Agenda, which describes the status of a project addressing Identifiable Intangible Assets and Subsequent Accounting for Goodwill:
After reviewing the above two articles, develop answers to the following questions in your initial response to this graded discussion topic.

1. What is your personal opinion regarding the accounting for goodwill? Should the accounting for goodwill remain as described in ASU 2017-04 in the future? Why or why not in your opinion?
2. ASU 2014-02 allows private companies the option to amortize goodwill over 10 years. Regardless of the status of the FASBs Technical Agenda project related to accounting for goodwill as of the date of this Discussion, why not also require publicly listed companies to amortize goodwill over 10 years?
Why should goodwill be accounted for, one way, for publicly-listed firms, and other ways for private companies?
Does that make sense?
3. If the FASB allowed companies to amortize goodwill over any period of time not to exceed 10 years, would it invalidate the comparability basics; one of the fundamental premises of accounting and financial statements? Why or why not in your opinion?
4. After reading the comments letters on this topic from the FASBs Technical Agenda website, are there any particular comment letters that you believe to be more compelling?
If so, pick two comment letters, copy and paste the key part(s) of those comment letters here in bold type into your initial response, and describe why you believe the information contained in those comment letters is more compelling to you and why.
Did these two comments letter change any of your answers to the first 3 questions above or help you to form your answers to the first 3 questions above?

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