In Jurisdictions Where the Impairment of Goodwill Is Not Tax

question 16

Multiple Choice

In jurisdictions where the impairment of goodwill is not tax deductible,AASB 112 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:

Physical Energy

The capacity to do work, which may manifest in various forms such as kinetic, potential, thermal, electrical, chemical, nuclear, or other forms of energy.

Physical Objects

Material entities that occupy space and have mass, as opposed to abstract concepts or ideas.

Light Wave

A form of electromagnetic radiation that is visible to the human eye and is responsible for the sense of sight.

Intensity

The degree of strength, force, or energy with which a feeling, process, or phenomenon occurs.