The Release of AASB 138 Has Had What Impact on the Methods

question 59

Multiple Choice

The release of AASB 138 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:

Extended Problem-Solving

A consumer decision-making process used for high involvement purchases, requiring considerable time and effort in evaluating alternatives.

Reference Group

One or more persons whom an individual uses as a basis for comparison regarding beliefs, feelings, and behaviors.

Indirect Influence

The subtle, non-direct impact that an entity or action may have on people's decisions, behaviors, or outcomes without explicit instruction or direct intervention.

Consumer Reports

Publications that review and provide advice about products and services based on thorough testing and assessments.