Assertion (A): Goodwill is an intangible asset and is recognised as an asset only when consideration is paid for it.

Assertion (A): Goodwill is an intangible asset and is recognised as an asset only when consideration is paid for it.

Reason (R): AS 26, Intangible Assets prescribes to recognise goodwill as an asset only when consideration has been paid for it.

In the context of the above two statements, which of the following is correct?

(a) Assertion (A) and Reason (R) are correct but the Reason (R) is not the correct explanation of Assertion (A).

(b) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

(c) Assertion (A) is correct but the Reason (R) is not correct.

(d) Both Assertion (A) and Reason (R) are incorrect.