Which of the Following Statement(s)in Regard to Goodwill Is/are Correct

question 24

Multiple Choice

Which of the following statement(s) in regard to goodwill is/are correct in accordance with AASB 136 "Impairment of Assets"?

• A) An impairment loss must be recognised when the carrying amount of a cash-generating unit exceeds it recoverable amount.
• B) An impairment loss recognised may be reversed in subsequent period.
• C) Value in use is the present value of future cash flows expected to be derived from a cash-generating unit.
• D) All of the given answers.
• E) An impairment loss must be recognised when the carrying amount of a cash-generating unit exceeds it recoverable amount and an impairment loss recognised may be reversed in subsequent period.

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Definitions:

Implied Condition

A term in a contract that is not expressly stated but is assumed to exist to fulfill the contract's purpose.

Caveat Emptor

A Latin phrase meaning "let the buyer beware," which implies that the buyer assumes the risk about the quality and condition of the product being sold.

Retention of Deposit

The act of keeping an advance payment or security deposit until certain conditions are met, typically used in leasing or contracting scenarios.

Custom-Made

Specifically designed and made to an individual's specifications or requirements; tailor-made.