The statement concerning the requirements of AASB 138 in relation to goodwill that is incorrect is:
A) it prohibits the recognition of internally generated goodwill
B) it distinguished between identifiable intangible assets and goodwill
C) it requires goodwill to be tested for impairment at least every 5 years
D) none of the requirements is incorrect

Question

Quizplus · Accepted Answer

AASB 138 requires goodwill to be tested for impairment on an annual basis or more frequently if there are indications that the carrying amount may be impaired. Therefore, the statement that it requires goodwill to be tested for impairment at least every 5 years is incorrect. The other statements are correct.

The Statement Concerning the Requirements of AASB 138 in Relation