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.

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Definitions:

Social Trap

Situations in which individuals or groups make decisions that seem beneficial in the short term but lead to negative outcomes in the long term for themselves and/or others.

Superordinate Goals

Shared goals that necessitate cooperative effort and can reduce conflict between groups by aligning their interests.

Reciprocity Norm

A social norm that expects individuals to help those who have helped them, fostering cooperative and mutually beneficial interactions.

Landfills

Designated areas where waste is disposed of by burial, considered the oldest form of waste treatment.