Which accounting topic was the source of strong opposition by the business community during the conceptual framework period?
A) Goodwill
B) Interest on long-term loans
C) Comprehensive income
D) Equity classification

Question

Quizplus · Accepted Answer

During the conceptual framework period, the business community strongly opposed the accounting treatment of goodwill, which is an intangible asset that arises when a company acquires another company for more than its net book value. The opposition was mainly due to the uncertainty surrounding the valuation and accounting for goodwill. As a result, accounting standard-setting bodies around the world have been working to provide guidance and clarity on the accounting treatment of goodwill.

Which Accounting Topic Was the Source of Strong Opposition by the Business