Which of the following statements is incorrect?
A) Goodwill cannot be revalued.
B) Goodwill is subject to amortisation.
C) Goodwill is not subject to amortisation.
D) AASB 138/IAS 38 Intangible Assets does not allow the recognition of internally generated goodwill.

Question

Quizplus · Accepted Answer

Goodwill is not subject to amortisation. This is because goodwill is considered to have an indefinite useful life and does not have a finite useful life like other intangible assets. However, it is subject to impairment testing to ensure that the carrying value of the intangible asset is not more than its recoverable amount.

Which of the Following Statements Is Incorrect