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
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.
