According to IFRS 3, How Should Companies Account for Negative

question 4

Multiple Choice

According to IFRS 3, how should companies account for negative goodwill arising from business combinations?

• A)It should be capitalized and amortized over a period of no more than 40 years.
• B)It should be treated as a loss on the consolidated income statement.
• C)It should be recognized immediately as a gain in the income statement.
• D)There is no rule for negative goodwill, because there is no such thing.

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Definitions:

B. F. Skinner

An American psychologist known for his work in behaviorism and the development of the theory of operant conditioning, which emphasizes the role of reinforcement and punishment in shaping behavior.

Law of Effect

A principle in psychology proposed by Edward Thorndike, suggesting that behaviors followed by positive outcomes are likely to be repeated, while those followed by negative outcomes are less likely to reoccur.

Skinner

B.F. Skinner, an influential American psychologist known for his work in behaviorism and the development of the theory of operant conditioning.

Pavlov

A Russian physiologist known for his work in classical conditioning, demonstrating how stimuli can trigger conditioned responses.