How Is Goodwill Resulting from Business Combinations Treated Under Japanese

question 51

Multiple Choice

How is Goodwill resulting from business combinations treated under Japanese GAAP?

• A)It is capitalized and amortized over a period of no more than 40 years.
• B)It may be expensed in the year the subsidiary is acquired.
• C)It is capitalized and written down when its fair value becomes less than its carrying value.
• D)It is amortized over between 5 and 40 years.

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Definitions:

Ratify

To formally approve or confirm an agreement or act, making it officially valid.

Breach

The failure to perform obligations as stipulated in a contract, leading to potential legal consequences.

Liability

The state of being legally responsible for something, especially in terms of debts or legal obligations.

Nuisance

An act, condition, or thing unreasonably interfering with the use or enjoyment of land or property of another.