AASB 138 Intangibles, requires goodwill to only be recognised as an asset if it:
A) is internally generated.
B) is acquired as part of a business combination.
C) does not exceed its internally recorded cost.
D) arises as a result of creating new assets within the normal business operations.

Question

Quizplus · Accepted Answer

AASB 138 requires goodwill to only be recognised as an asset if it is acquired as part of a business combination. Internally generated goodwill cannot be recognised as an asset. The cost of goodwill cannot be exceeded, but this is not the only requirement for recognition. Creating new assets within normal business operations does not necessarily result in the recognition of goodwill.

AASB 138 Intangibles, Requires Goodwill to Only Be Recognised as an Asset