As Part of Adopting IFRS,goodwill Acquired in a Business Combination

question 44

Multiple Choice

As part of adopting IFRS,goodwill acquired in a business combination is no longer amortised.Instead,the acquirer shall test goodwill for impairment (AASB 3 "Business Combinations") .When is goodwill considered to be impaired?

• A) If the recoverable amount of the cash generating unit is greater than the unit's carrying amount.
• B) If the recoverable amount of the cash generating unit is less than the unit's carrying amount.
• C) If the value in use of the cash generating unit is greater than the unit's carrying amount.
• D) If the fair value less costs to sell is greater than the unit's carrying amount.
• E) None of the given answers.

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Definitions:

Fatty Tissue

Connective tissue composed primarily of adipocytes, used for energy storage, insulation, and cushioning of the body.

Sex Drive

The natural human urge or desire for sexual activity.

Testosterone

A primary male sex hormone that plays key roles in the development of male reproductive tissues, as well as promoting secondary sexual characteristics such as increased muscle and bone mass.

Somatostatin

A hormone that inhibits the release of several other hormones, including growth hormone and insulin.