56. Consider the following quotation and answer the question below. In accordance with AASB 3 Business Combinations, goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. This statement is:
incorrect because this is the definition of an internally generated goodwill.
incorrect because it is the future economic benefits arising from other assets acquired that are not capable of being individually identified and separately recognized.
correct because this is the definition given by the accounting standard.
correct because goodwill can be individually identified and separately recognized.
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57. In a business combination, the acquiree is the part that:
gives up control over the net assets acquired;
pays the acquisition consideration;
obtains control of the net assets of the other entity;
finances the business combination;
UGC NET PAPER 1
UGC NET Management
UGC NET COMPUTER SCIENCE
UGC NET COMMERCE
GATE COMPUTER SCIENCE
CFA Level 1
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