Under AASB 138 Intangibles,goodwill may only be recognised as an asset if it:
A)arises as a result of creating new assets within the normal business operations
B)does not exceed its internally recorded cost
C)is internally generated
D)is acquired as part of a business combination.

Question

Quizplus · Accepted Answer

Goodwill can only be recognized as an asset if it is acquired as part of a business combination. It cannot be internally generated or arise from normal business operations, and its value may exceed its internally recorded cost. AASB 138 requires that any goodwill recognized is initially measured as the excess of the cost of the business combination over the net identifiable assets acquired.

Under AASB 138 Intangibles,goodwill May Only Be Recognised as an Asset