The Release of IAS 38 Has Had What Impact on the Methods

question 10

Multiple Choice

The release of IAS 38 has had what impact on the methods of amortising goodwill?

• A)The choice to use the inverted sum-of-digits method was phased out over a period of 15 years, to be replaced by straight-line depreciation.
• B)The option to amortise goodwill was removed and replaced with annual impairment testing.
• C)Entities were given the option of continuing to amortise goodwill or to subject it to impairment testing each year.
• D)All entities were required to amortise goodwill over 20 years using the straight-line method to allow comparisons.

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Definitions:

European Diseases

Illnesses brought to the Americas and other regions by European explorers and colonists that had devastating effects on indigenous populations due to lack of immunity.

Immunity

Protection against a disease or the legal protection from prosecution for certain actions or crimes.

Mississippian Societies

Native American cultures that thrived in the Mississippi River Valley, known for their large earthen mounds and complex societies.

Corn Cultivation

The agricultural practice of growing corn (maize), one of the most significant cereal crops worldwide.