Asked by Bridger Johnson on Jul 09, 2024
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AASB 138 Intangibles, requires goodwill to only be recognised as an asset if it:
A) is internally generated.
B) is acquired as part of a business combination.
C) does not exceed its internally recorded cost.
D) arises as a result of creating new assets within the normal business operations.
AASB 138
A guideline issued by the Australian Accounting Standards Board that mandates how entities should account for and report on intangible assets.
Goodwill
The value of a company's brand name, solid customer base, good customer relations, good employee relations, and any patents or proprietary technology representing excess of purchase price over the fair market value of the net identifiable assets.
Business Combination
A transaction or event in which an acquirer gains control of one or more businesses.
- Acquire knowledge on the prerequisites for the identification of goodwill and intangible assets in mergers and acquisitions.
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Learning Objectives
- Acquire knowledge on the prerequisites for the identification of goodwill and intangible assets in mergers and acquisitions.
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