Which of the Following Statement(s)in Regard to Goodwill Is/are Correct

question 13

Multiple Choice

Which of the following statement(s) in regard to goodwill is/are correct in accordance with IAS 36 Impairment of Assets?

• A)An impairment loss must be recognised when the carrying amount of a cash-generating unit exceeds its recoverable amount.
• B)An impairment loss recognised for goodwill shall not be reversed in a subsequent period.
• C)Value in use is the present value of future cash flows expected to be derived from a cash-generating unit.
• D)All of the given statements are correct.

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Definitions:

Predictive Validity

The degree to which a score from a test or scale forecasts upcoming performance in a connected task or result.

Culturally Biased

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Prototypes

Original model or first form of something from which other forms are copied or developed, often used in the context of products, designs, or cognitive psychology.

Trial-And-Error

A problem-solving method involving repeated, varied attempts until success is achieved, learning from the errors in previous attempts.