Question
Which of the following statements is correct in respect to the treatment of goodwill arising on consolidation: a. Goodwill arising on consolidation should be amortised
Which of the following statements is correct in respect to the treatment of goodwill arising on consolidation:
| a. | Goodwill arising on consolidation should be amortised over its estimated useful life. | |
| b. | Goodwill arising on consolidation should be reported continuously as part of the consolidated financial statements unless it is impaired. | |
| c. | Goodwill arising on consolidation is determined as the difference between the fair value of the consideration paid / transferred and the face value of the consideration provided to former shareholders of Joey Ltd. | |
| d. | Goodwill arising on consolidation should be tested for impairment annually, only if indicators exist. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Horngrens Accounting
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
11th edition
978-0133851151, 013385115X, 978-0133866889
