Under the Single-Date Method,goodwill Would Be Recognised

question 38

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.
• E) None of the given answers.

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Definitions:

Poisson Probability Distribution

Describes the probability of a given number of events happening in a fixed interval of time or space when these events occur with a known constant mean rate.

Business Processes

A set of tasks and activities that are sequentially organized to achieve a specific organizational goal or objective.

Independent Events

Two or more events where the occurrence of one does not affect the probability of the others.

Normal Distribution

A bell-shaped probability distribution that is symmetric about the mean, describing how continuous data is dispersed around the average value.