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

question 56

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.
• E) None of the given answers.

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Definitions:

Personality Trait

Enduring characteristics or tendencies that influence an individual's behavior across different situations.

Extraversion

A personality trait characterized by outgoingness, high levels of energy, and a preference for social interaction.

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The average number of years that a person or animal is expected to live, based on statistical averages for a particular population.

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A state in which an individual experiences uncertainty, conflict, or disorder regarding their personal identity or role in society.