Carillion collapse increases scrutiny of goodwill impairment rules

Which of these represents the correct accounting treatment for internally-generated intangible assets per IAS 38 Intangible Assets?

Do not recognise them as assets

Recognised in non-current assets at present value of future cash flows

Recognised in non-current assets at fair value

Recognised in non-current assets at cost

Which of the following represents the correct treatment for acquired goodwill under IFRS 3 Business Combinations?

Record as an expense

Record as income over a maximum of 20 years

Amortise over a maximum of 20 years

Hold an annual impairment review

When should impairment of goodwill be recognised under the existing IFRS 3 treatment?

If the recoverable amount exceeds the carrying amount

If there is a decline in the total headroom since the prior period

If there is no total headroom in the acquisition

If the carrying amount exceeds the recoverable amount

Which, if any, of the following topics were also being discussed at the global preparers forum? Topic 1 - The primary financial statements project, or Topic 2 - Business entities under common control

Neither topic is correct

Both topics are correct

Topic 1 only is correct

Topic 2 only is correct

Which of the following is true regarding the proposed total headroom approach to impairment?

Impairment is likely to exist if there is a decline in total headroom since the prior period

mpairment will exist if the carrying amounts of a unit exceed its recoverable amount

The total headroom approach is likely to lead to a decrease in impairments

he total headroom is to be recognised as an asset in the statement of financial position

What is the current treatment for intangibles acquired as part of a business combination?

Identifiable assets must be recognised at fair value

Identifiable assets must be recognised at historic cost

All internally generated assets must be subsumed within goodwill

None of these

Which of the following is a proposed benefit of the total headroom approach to impairment?

It will lead to impairments being recognised earlier than currently

All of the these

It should reduce the risk of over optimistic assumptions regarding future cash flows

It reflects the pattern of a unit’s fall in value

Which, if any, of the following statements is correct? Statement 1 - Wasting intangible assets cannot be easily separated from the entity as a whole, or Statement 2 - Organically replace intangible assets have finite lives and lead to identifiable revenue streams

Both statements are correct

Statement 2 only is correct

Neither statement is correct

Statement 1 only is correct

Which of the following is not one of the approaches to intangibles acquired as part of a business combination?

Require additional disclosures, similar to IFRS 13 Fair Value Measurement

Retain the current requirements of IFRS 3

Allow indefinite-lived intangible assets to be included within goodwill

Recognise organically-replaced intangible assets separately to goodwill

Which, if any, of the following statements is correct regarding the subsequent treatment of goodwill under IFRS 3 is/are true? Statement 1 - Post-acquisition increases in acquired goodwill should not be recognised, Statement 2 - Impairment losses on goodwill should be recognised as an expense in the statement of profit or loss

Neither statement

Statement 1 only

Statement 2 only

Both statements

Carillion collapse increases scrutiny of goodwill impairment rules

Which of these represents the correct accounting treatment for internally-generated intangible assets per IAS 38 Intangible Assets?

Which of the following represents the correct treatment for acquired goodwill under IFRS 3 Business Combinations?

When should impairment of goodwill be recognised under the existing IFRS 3 treatment?

Which, if any, of the following topics were also being discussed at the global preparers forum? Topic 1 - The primary financial statements project, or Topic 2 - Business entities under common control

Which of the following is true regarding the proposed total headroom approach to impairment?

What is the current treatment for intangibles acquired as part of a business combination?

Which of the following is a proposed benefit of the total headroom approach to impairment?

Which, if any, of the following statements is correct? Statement 1 - Wasting intangible assets cannot be easily separated from the entity as a whole, or Statement 2 - Organically replace intangible assets have finite lives and lead to identifiable revenue streams

Which of the following is not one of the approaches to intangibles acquired as part of a business combination?

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Carillion collapse increases scrutiny of goodwill impairment rules

Which of these represents the correct accounting treatment for internally-generated intangible assets per IAS 38 Intangible Assets?

Which of the following represents the correct treatment for acquired goodwill under IFRS 3 Business Combinations?

When should impairment of goodwill be recognised under the existing IFRS 3 treatment?

Which, if any, of the following topics were also being discussed at the global preparers forum? Topic 1 - The primary financial statements project, or Topic 2 - Business entities under common control

Which of the following is true regarding the proposed total headroom approach to impairment?

What is the current treatment for intangibles acquired as part of a business combination?

Which of the following is a proposed benefit of the total headroom approach to impairment?

Which, if any, of the following statements is correct? Statement 1 - Wasting intangible assets cannot be easily separated from the entity as a whole, or Statement 2 - Organically replace intangible assets have finite lives and lead to identifiable revenue streams

Which of the following is not one of the approaches to intangibles acquired as part of a business combination?

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out of

0

Test passed. Enter your details to download your certificate. Your certificate will also be sent to you by email.

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