Goodwill acquired in associate is:
A)amortised across its useful life.
B)written off immediately against the carrying amount of the investment.
C)carried as a separate asset in the accounting records of the investor.
D)not subject to amortisation.

Question

Quizplus · Accepted Answer

Goodwill acquired in an associate is not subject to amortization because it is already part of the carrying amount of the investment. Instead, it is tested for impairment annually or when there are indications of impairment. It is not carried as a separate asset in the accounting records of the investor and cannot be written off immediately against the carrying amount of the investment.

Goodwill Acquired in Associate Is