As Part of Adopting IFRS,goodwill Acquired in a Business Combination

question 71

Multiple Choice

As part of adopting IFRS,goodwill acquired in a business combination is no longer amortised.Instead,the acquirer shall test goodwill for impairment (AASB 3 Business Combinations) .When is goodwill considered to be impaired?

• A) If the recoverable amount of the cash generating unit is greater than the unit's carrying amount.
• B) If the recoverable amount of the cash generating unit is less than the unit's carrying amount.
• C) If the value in use of the cash generating unit is greater than the unit's carrying amount.
• D) If the fair value less costs to sell is greater than the unit's carrying amount.

Determine the present value of growth opportunities based on future earnings estimates, reinvestment rates, and the cost of equity.

Assess investment recovery time based on P/E ratio and stock price, considering scenarios with no earnings growth.

Understand how to query for null values and the implication of using "Is Null" criterion.

Identify the process to close or manipulate views and windows within a database management system.

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Definitions:

Household

A social unit consisting of individuals living together in a dwelling, typically bonded by kinship or economic ties.

Family

A social unit consisting of individuals who are connected by blood, marriage, or adoption, functioning as a single household and participating in various emotional, economic, and social duties.

Endogamy

Marriage within a particular group or category of individuals.

Exogamy

A social arrangement in which individuals are required to marry outside their social group, clan, or tribe, promoting alliances and diversity in genetic contribution.