Which of the following statements is correct, when it comes to the reference of international accounting for goodwill?

A) U.S. companies have complained that past accounting rules for amortizing goodwill placed them at a disadvantage in competing against foreign companies for merger partners.

B) Some foreign countries permitted the immediate write-off of goodwill to stockholders equity.

C) The IASB and the FASB are working to eliminate differences in accounting for business combinations.

D) All of the above are correct.

In reference to material transactions between an investor and an investee, when the investor can significantly influence the investee, which of the following statements is correct, assuming that the investor is using the equity method?

A) There is the presumption of arms-length bargaining between the related parties. B) As long as the investor recognizes the effects of the transaction in its financial statements, it is not required to provide any additional disclosures. C) None of the above is correct. D) In reporting its share of earnings and losses of an investee, the investor must eliminate the effect of profits and losses on the transactions until they are realized.

Which of the following was a major motivation for FASBs creation of ASC 810-10-65?

A) the risk of subsidiary legal reorganization or bankruptcy was not disclosed. B) temporary control was not being disclosed properly. C) the elimination off-balance sheet financing D) situations occurred where subsidiary control did not lie with the parent company.