Under IASB for small and medium entities, goodwill:a.is subject to impairment procedures.b.is never adjusted.c.is amortized over ten yearsd.is not recorded in an acquisition.

Answered: Under IASB for small and medium…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Under IASB for small and medium entities, goodwill:

a.	is subject to impairment procedures.
b.	is never adjusted.
c.	is amortized over ten years
d.	is not recorded in an acquisition.

Expert Solution

Step 1

Goodwill is an intangible asset, It is connected to the acquisition of one business by another. Intellectual property, brand awareness, etc. are included in goodwill. Amortization is an accounting method used to reduce an intangible asset's value over a certain time period.

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