In Jurisdictions Where the Impairment of Goodwill Is Not Tax

question 2

Multiple Choice

In jurisdictions where the impairment of goodwill is not tax deductible, AASB 112 Income Taxes:

• A) requires that any deferred tax items for goodwill be capitalised in the carrying amount of goodwill.
• B) requires that any deferred tax items in relation to goodwill be recognised directly in equity.
• C) does not permit the application of deferred tax accounting to goodwill.
• D) allows the recognition of a deferred tax item in relation to goodwill.