When Goodwill in an Associate Is Acquired by an Investor

question 28

Multiple Choice

When goodwill in an associate is acquired by an investor, the amortisation of goodwill is:

• A) spread evenly across the useful life of the investment.
• B) not permitted.
• C) included in the determination of the investor's share of the associate's profit or loss.
• D) included in the revaluation of the investment.

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Definitions:

Task Requirements

The specific duties, responsibilities, and conditions necessary to successfully complete a job or task.

Employee Contributions

The individual efforts, skills, and knowledge that employees bring to their roles, contributing to the organization's success.

Job Enrichment

The process of making a job more rewarding, stimulating, and satisfying by adding more meaningful tasks and duties.

Frederick Herzberg

A psychologist best known for developing the Motivation-Hygiene Theory which distinguishes between motivators that increase job satisfaction and hygiene factors that can prevent dissatisfaction.