Question 1

During 2013, Sacco Limited estimated that the carrying amount of goodwill was impaired and wrote it down by $50 000. In 2014, the company reassessed goodwill was decided that the old acquired goodwill still existed. The appropriate accounting treatment in 2014 is:

ignore the reversal as it is prohibited by AASB 136 Impairment of Assets.

recognise the revalued amount of goodwill by an adjustment against the asset revaluation surplus account.

reverse the previous goodwill impairment loss.

increase goodwill by an adjustment to retained earnings.