Buster Plc Had Purchased Goodwill to the Value of €100

question 29

Multiple Choice

Buster Plc had purchased goodwill to the value of €100 000 recorded in its consolidated financial statements.The goodwill has been determined to have an indefinite useful life.However,one year later Buster Plc's cash generating units has been determined to have incurred an impairment loss of €13 000.What is the appropriate action for Buster limited to comply with IAS 38 Intangible Assets and IAS 36 Impairment of Assets?

• A)Write-off goodwill in its entirety as goodwill no longer exists.
• B)Recognise impairment loss of €13 000 and credit goodwill.
• C)Amortise goodwill for 20 years using straight-line method.
• D)Recognise impairment loss of €13 000 and credit equity.

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Definitions:

Oral Opiate Analgesic

A type of pain reliever taken by mouth that works by binding to opiate receptors in the brain to reduce the perception of pain.

Duration of Action

The length of time a drug or other substance remains effective or active in the body after its administration.

Medication Administration

The process by which drugs are provided to and taken by a patient, as prescribed by a healthcare provider.

Epidural Catheter

An Epidural Catheter is a tube inserted through the back into the epidural space to deliver drugs for pain relief, especially during surgery or childbirth.