How Should Negative Goodwill Be Shown on the Consolidated Financial

question 41

Multiple Choice

How should negative goodwill be shown on the consolidated financial statements of the acquirer?

• A)As a gain on the statement of comprehensive income
• B)As a loss on the statement of comprehensive income
• C)As a liability on the statement of financial position
• D)As a separate amount under shareholders' equity on the statement of financial position

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Definitions:

Internal Cause

A factor or motive originating within an individual or system that contributes to a particular outcome or action.

Distinctiveness

The quality of being easily distinguishable from others due to unique characteristics or features.

Consensus

A general agreement among the members of a group or community, often used in the context of decision-making processes.

Aptitude

A natural ability or skill that makes it easier for a person to learn or excel in a particular area.