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Accounting for purchased goodwill has been a controversial issue for many years. In the United States, the amount of purchased goodwill is capitalized and not amortized. Globally, the treatment of goodwill varies significantly, with some countries not recognizing goodwill as an asset. Professors Johnson and Petrone, in "Is Goodwill an Asset?" discuss this issue.
Required:
1. Does goodwill meet the FASB's definition of an asset?
2. What are the key concerns of those that believe goodwill is not an asset?
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