When Goodwill Is Acquired by an Investor in an Associate

question 6

Multiple Choice

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

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

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Definitions:

Environmental Effects

Impacts on the natural world due to human activity or natural processes, often evaluated in terms of changes to ecosystems, climate, and biodiversity.

Tradable Environmental Permits

Market-based instruments allowing for the buying and selling of pollution allowances, aiming to reduce harmful emissions cost-effectively.

Disadvantages

The negative or less favorable aspects of something that may hinder progress, success, or satisfaction in certain contexts.

Production

Production is the process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (output).