Having Recognized Goodwill Arising in the Business Combination, Which of the Following

question 4

Multiple Choice

Having recognized goodwill arising in the business combination, which of the following statements regarding the subsequent accounting is FALSE?

• A)Goodwill is subject to amortization.
• B)Goodwill is subject to an annual impairment test.
• C)Goodwill cannot be revalued.
• D)IAS38 does not allow the recognition of internally generated goodwill.

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Definitions:

Course of Performance

The conduct between parties under a contract that indicates what they consider to be the agreement's requirement, used to interpret the contract's terms.

Course of Dealing

The conduct between parties in previous transactions that establishes a common basis for their understanding.

Conforming Goods

Products or materials that meet the specifications and standards outlined in a contract or agreement between buyer and seller.

Course of Performance

A term referring to the conduct between parties that is used to interpret their agreement within their ongoing business relationship.