Under the Single-Date Method Goodwill Would Be Recognised

question 30

Multiple Choice

Under the single-date method goodwill would be recognised:

• A) at the point in time when the parent entity ultimately gains control of the subsidiary.
• B) at the time when each additional acquisition of shares is made.
• C) as part of equity in the parent's books.
• D) at the point in time when the subsidiary shareholders acknowledge that they will sell their shareholdings to the parent entity.

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Definitions:

Shoreline Hazards

Risks associated with the coastal areas, including erosion, flooding, and storms, impacting ecosystems and human settlements.

Erosion

The process by which natural forces like water, wind, ice, and gravity remove and transport soil and rock materials from one location to another.

High-risk Areas

Regions that are highly susceptible to natural disasters, environmental hazards, or other significant risks.

Thrust Fault

A geological fault in which the upper block, or hanging wall, is pushed up and over the lower block, or footwall, often forming mountains or ridges.