In Jurisdictions Where the Impairment of Goodwill Is Not Tax

question 16

Multiple Choice

In jurisdictions where the impairment of goodwill is not tax deductible,AASB 112 Income Taxes:

• A)does not permit the application of deferred tax accounting to goodwill
• B)allows the recognition of a deferred tax item in relation to goodwill
• C)requires that any deferred tax items in relation to goodwill be recognised directly in equity
• D)requires that any deferred tax items for goodwill be capitalised in the carrying amount of goodwill.

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Definitions:

Expectancy Theory

A motivation theory stating that an individual's motivation is influenced by the belief that effort will lead to performance and performance will lead to desired rewards.

Need-Based Theory

A theory that emphasizes understanding human motivation in terms of specific needs, such as safety, esteem, and self-actualization.

Cognitive Perspective

A psychological approach that focuses on the mental processes involved in knowledge acquisition, perception, memory, and problem-solving.

Goal Theory

A psychological framework suggesting that setting and striving for specific, challenging goals can significantly improve performance.