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:

Decentralization

The process of distributing or delegating power and decision-making authority away from a central authority to more local or individual actors within the organization.

Subunits

Components or sections of an organization that operate semi-independently as part of the whole, often with specific functions or goals.

Consistent Pattern

A recurring or uniform sequence in behavior or events over a period.

Total Quality Management

A management approach focused on continuous improvement of processes, products, and services through ongoing feedback and systematic analysis.