The Statement Concerning the Requirements of AASB 138 in Relation

question 21

Multiple Choice

The statement concerning the requirements of AASB 138 in relation to goodwill that is incorrect is:

• A) it prohibits the recognition of internally generated goodwill
• B) it distinguished between identifiable intangible assets and goodwill
• C) it requires goodwill to be tested for impairment at least every 5 years
• D) none of the requirements is incorrect

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Definitions:

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, emphasizing the effects of external stimuli on subsequent behavior.

Positive Reinforcement

A psychological concept involving the addition of a reward following a desired behavior, encouraging its future occurrence.

Behavior

The actions or reactions of an individual, often in relation to the environment or stimuli.

Convergence

The inward movement of the eyes as they focus on an object that is drawing nearer.