In Jurisdictions Where the Impairment of Goodwill Is Not Tax

question 6

Multiple Choice

In jurisdictions where the impairment of goodwill is not tax deductible, IAS 12 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:

Development Environment

A set of processes and programming tools used for developing applications and software.

Designer

A professional who creates plans and aesthetics for objects, environments, or visual communications, often with a focus on functionality and user experience.

Art Background

Graphical or aesthetic enhancements used as the backdrop for digital content, emphasizing creativity and visual appeal.

Software Development

The procedure of imagining, defining, creating, coding, documenting, evaluating, and repairing involved in the development and upkeep of applications, frameworks, or various software parts.