The Most Political Issue in the FASB's Most Recent Deliberations

question 79

Multiple Choice

The most political issue in the FASB's most recent deliberations and amendments to GAAP on business combinations was:

• A)The negative effects on subsequent earnings of amortizing goodwill if firms were required to use the purchase method of accounting for the combination.
• B)The negative effects on subsequent earnings of amortizing goodwill if firms were required to use the pooling method of accounting for the combination.
• C)The unrealistic balance sheet assets that would be created if firms were required to use the purchase method of accounting for the combination.
• D)The unrealistic balance sheet assets that would be created if firms were required to use the pooling method of accounting for the combination.

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