When Goodwill Is Acquired by an Investor in an Associate,the

question 25

Multiple Choice

When goodwill is acquired by an investor in an associate,the amortisation of goodwill is:

• A)spread evenly across the useful life of the investment;
• B)not permitted;
• C)included in the determination of the investor's share of the associate's profit or loss;
• D)included in the revaluation of the investment.

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Definitions:

Personal Use

Utilization of a company or business asset for individual, non-business related activities or benefits.

Drawings

Withdrawals of cash or other assets from a privately-owned business by the owner(s) for personal use.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.

Debts And Obligations

Financial commitments or responsibilities, such as loans and promissory notes, that an entity is required to pay to others.