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In regards to goodwill, many financial analysts often write off goodwill immediately. What is the reason...

In regards to goodwill, many financial analysts often write off goodwill immediately. What is the reason they do this? What are your thoughts on this practice?

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Most of the analysts consider the value of goodwill is be very subjective thus believes that goodwill should not be provided the similar status as other types of assets such as receivables, cash, inventory, etc. According to them the presentation of goodwill on the balance sheet would not give useful information to the users of financial statements. I agree on this process because prediction of the actual life of goodwill and an appropriate amortization pattern is an extremely tough task. Moreover the investors find the charge of amortization of a little use while evaluating the company's financial performance

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