AASB 138 Contains Some Elements That Seem to Be Reactions

question 33

Multiple Choice

AASB 138 contains some elements that seem to be reactions to opportunistic behaviour by preparers of accounts and to the degree of uncertainty surrounding goodwill as an unidentifiable intangible asset.These elements include:

• A) The prohibition on recording internally generated goodwill.
• B) The requirement to use a specific rate of amortisation.
• C) The specification of impairment testing.
• D) The prohibition on recording internally generated goodwill and the specification of impairment testing.
• E) All of the given answers.

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Definitions:

Gainsharing Plan

A performance-based compensation strategy that rewards employees for contributing to a company's success through increased productivity or cost savings.

Job Enlargement

The process of increasing the number and variety of tasks that an employee performs, aiming to reduce monotony and increase job satisfaction.

Natural Work Units

Groups in a work setting structured around common tasks or processes that allow employees to work effectively toward shared goals with minimal supervision.

Client Relationships

The dynamics and interactions between a business and its clients, emphasizing communication, trust, and satisfaction to foster long-term engagements.