State under what conditions/assumptions the following statements are true (state only one important condition/assumption for each): A Company can show Goodwill in its Balance Sheet.

A company can show Goodwill in its Balance Sheet. It must be noted that a company cannot show its own goodwill in its own balance sheet; however, it buys / acquires goodwill from someone, then goodwill can be shown in the balance sheet. As per AS 26, the self-generated goodwill/own goodwill/ internally generated goodwill are termed as unidentified intangible assets whose cost cannot be measured reliably. So they are not recognized in books / financial statements.