Any Goodwill Arising on a Business Combination Is Required to Be

question 21

Multiple Choice

Any goodwill arising on a business combination is required to be tested at least annually for impairment.This requirement arises from the operation of:

• A) AASB116 Property Plant and Equipment
• B) AASB3 Business Combinations
• C) AASB138 Intangible Assets
• D) AASB 136 Impairment

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Definitions:

Assembly Department

A division within a manufacturing facility where parts are put together to form finished products.

Weighted-Average Method

An inventory valuation method where costs of goods sold and ending inventory values are based on the average cost of all items available for sale.

Assembly Department

A division within a manufacturing facility where parts are put together to make a final product.

Cost Reconciliation Report

A document summarizing the costs in a production process, comparing expected costs to actual costs, and explaining differences or variances.