Prior to the Introduction of AASB 138 Companies Had Found

Prior to the introduction of AASB 138 companies had found ways to circumvent the requirements of the revised (1996) version of AASB 1013.These methods included:

A) using the inverted sum-of-digits amortisation technique.
B) calculating goodwill as the difference between the carrying value of the net assets of the acquired company and the consideration paid.
C) requiring the purchased company to make excessive provisions for restructuring costs to be undertaken after the company is purchased.
D) attributing the excess of the cost of acquisition over the fair value of the net identifiable assets of the company acquired to brands, licences and other identifiable intangible assets.