Which of These Provisions of AASB 138 Is Inconsistent with the Asset

question 11

Multiple Choice

Which of these provisions of AASB 138 is inconsistent with the asset recognition criteria of the Framework?

• A) Reviewing the unamortised balance of goodwill annually and, to the extent it is no longer supported by probable future economic benefits, writing it down
• B) Recognising purchased goodwill as an asset
• C) Not recognising internally generated goodwill as an asset when the market value of an entity can be measured reliably
• D) Amortising goodwill

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Definitions:

Gross Negligence

An extreme lack of care that demonstrates a willful or reckless disregard for the safety or lives of others, significantly beyond ordinary negligence.

Willful Misconduct

Intentional wrongdoing or reckless disregard for the safety and rights of others.

Limits Liability

Refers to strategies or legal structures, like forming an LLC, aimed at reducing the financial risk individuals bear.

UCC

Short for Uniform Commercial Code, it's a set of laws that provide legal rules and guidelines for commercial transactions in the United States.