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However, there has been debate over the recognition of goodwill as an asset. The Concept Statement No.6 (Financial Accounting Standard Board, 1985, p.16) defines an asset as having two characteristics. Firstly, future economic benefits are expected to arise, a view accepted by Nethercott and Hanlon (2002, cited Dagwell et al, 2004, p.2) in regard to goodwill. The second characteristic concerns how controllable an item is as a result of past events. Harrington (1999) argues that goodwill is not independently reliasable, a point agreed by Sundararajan (1995), and that management has little control over it, which was the school of thought behind an immediate write off against reserves...
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