If a Decision Must Be Made About Whether or Not

question 39

Short Answer

If a decision must be made about whether or not to replace a machine, the-------------- of the existing machine is irrelevant.

Understand the requirements for recognition of goodwill and intangible assets in business combinations.

Grasp the accounting treatment of internally generated intangible assets according to AASB 138.

Recognize the disclosure requirements for intangible assets under AASB 138.

Understand the criteria for the classification of intangible assets as having finite or indefinite lives.

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Definitions:

Total Dollar Amount

The sum total in dollar value of all items considered in a transaction, report, or calculation.

Level Of Activity

A measurement of the amount of work or action in a specific area, often used in accounting or project management to quantify the extent of operations or tasks.

Cost Behavior

The way in which costs change in relation to changes in a business' levels of activity or production volume.

Related Activity

Activities or actions that are associated with or pertinent to a main activity or topic.