According to IFRS 3,how should companies account for Goodwill arising from business combinations?
A)It is capitalized and amortized over a period of no more than 40 years.
B)It is expensed in the year the subsidiary is acquired.
C)It is capitalized and written down when its fair value become less than its carrying value.
D)It is amortized over between 5 and 40 years.

Question

Quizplus · Accepted Answer

According to IFRS 3, Goodwill arising from business combinations is capitalized and tested for impairment annually. If its fair value becomes less than its carrying value, then it is written down. Amortization is not allowed for Goodwill under IFRS.

According to IFRS 3,how Should Companies Account for Goodwill Arising