Through 50 years of high quality service, Domo Diagnostics Laboratory has created goodwill with its clients that management estimates is worth at least $20,000,000. Under IAS 38, how should this be recognized?
A) An intangible asset "Goodwill" should be debited for $20,000,000.
B) The $20,000,000 should be expensed over a period of 20 years.
C) The $20,000,000 should be expensed over a period of 50 years.
D) It should not be recognized in Domo's accounting records at all.
Correct Answer:
Verified
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