How does UK GAAP differ from IFRS with respect to goodwill?
A)UK GAAP requires impairment testing annually, whereas IFRS allows amortization.
B)UK GAAP allows impairment testing annually, whereas IFRS requires amortization.
C)UK GAAP prohibits amortization, whereas IFRS allows amortization at the firm's choice.
D)UK GAAP allows amortization at the firm's choice, whereas IFRS prohibits amortization.

Question

Quizplus · Accepted Answer

Under UK GAAP, firms have the option to amortize goodwill over its useful life, whereas IFRS prohibits the amortization of goodwill and requires annual impairment testing instead.

How Does UK GAAP Differ from IFRS with Respect to Goodwill