Which statements are correct concerning goodwill I. goodwill shall not be amortized because its useful life is indefinite II. goodwill shall be tested for impairment at least annually or more frequently if events or changes in circumstances indicate a possible impairment. III. Once impairment loss is recognized for goodwill, the loss taken up is not allowed to be reversed in a subsequent period. IV. Further costs of developing and maintaining goodwill should be capitalized.
Which statements are correct concerning goodwill I. goodwill shall not be amortized because its useful life is indefinite II. goodwill shall be tested for impairment at least annually or more frequently if events or changes in circumstances indicate a possible impairment. III. Once impairment loss is recognized for goodwill, the loss taken up is not allowed to be reversed in a subsequent period. IV. Further costs of developing and maintaining goodwill should be capitalized.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which statements are correct concerning goodwill
I. goodwill shall not be amortized because its useful life is indefinite
II. goodwill shall be tested for impairment at least annually or more frequently if events or changes in circumstances indicate a possible impairment.
III. Once impairment loss is recognized for goodwill, the loss taken up is not allowed to be reversed in a subsequent period.
IV. Further costs of developing and maintaining goodwill should be capitalized.
I. goodwill shall not be amortized because its useful life is indefinite
II. goodwill shall be tested for impairment at least annually or more frequently if events or changes in circumstances indicate a possible impairment.
III. Once impairment loss is recognized for goodwill, the loss taken up is not allowed to be reversed in a subsequent period.
IV. Further costs of developing and maintaining goodwill should be capitalized.
a. I, II and III
b. I,III and IV
c. I,II and IV
d. II,III and IV
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