Under the IAS Negative Goodwill Is Recognised

question 7

Multiple Choice

Under the IAS negative goodwill is recognised,

• A)in the balance sheet as a reduction in the aggregate figure for goodwill
• B)in the balance sheet as a separate line under goodwill.
• C)in the balance sheet as a reduction in the revenue reserves.
• D)in the profit & loss account.

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Definitions:

Scarce

A condition or situation characterized by the limited availability of resources or goods, leading to competition for their acquisition or use.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision or choosing among options.

Alternatives

Different choices or options that are available in a decision-making process.

Adjusted Corporate Tax

This term might involve adjustments made to the corporate tax reported, accounting for various deductions, credits, and exemptions to reach a tax obligation more accurately reflecting the company's financial activity.