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:

Multiply

To increase a quantity by another quantity, a basic mathematical operation involving the addition of a number to itself a specified number of times.

Intercept

In the context of regression models, it refers to the value of the dependent variable when all independent variables are zero.

Independent Variable

The variable that is manipulated or controlled in an experiment to test its effect on the dependent variable.