AASB 138 contains some elements that seem to be reactions to opportunistic behaviour by preparers of accounts and to the degree of uncertainty surrounding goodwill as an unidentifiable intangible asset.These elements include:

Question

Quizplus · Accepted Answer

AASB 138 includes the prohibition on recording internally generated goodwill and the specification of impairment testing as measures to address opportunistic behaviour by preparers of accounts and uncertainty surrounding goodwill as an unidentifiable intangible asset. However, the standard does not mandate the use of a specific rate of amortisation. Therefore, options A and B are incorrect.

AASB 138 Contains Some Elements That Seem to Be Reactions