Coca-Cola’s plan goes flat

Multiple-choice questions. In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please reread the article before attempting the questions again.

What is the new name for the goodwill and impairment project?

Business Combinations - Disclosures, Goodwill and Impairment

Goodwill and impairment

Business Combinations - Goodwill, Impairment and Judgement

Business Combinations - Impairment decisions

Where would goodwill impairment be recorded?

In the Statement of Changes in Equity

None of the other answers

In Other Comprehensive Income

In the Statement of Profit or Loss

Which, if any, of the following statements are true? Statement 1, a trademark is identified as an intangible asset, or statement 2, intangibles with an indefinite life require an annual impairment review

Statement 1 only

Both statements

Statement 2 only

Neither statement

Which of these is identified as a problem associated with goodwill impairment?

It is done too little, too late

All of the above

It is too extreme

It is less reliable than amortisation

Which of the following items is true?

Disclosures will be set by the jurisdiction of the entity

Disclosures will be prescribed by amendments to IFRS 3

Disclosures will be based on information management use to review the acquisition

Disclosures will be prescribed by a new IFRS

What is a tentative proposal regarding disclosures relating to goodwill?

Goodwill will have to be allocated to a reportable segment

All of the other answers

Goodwill will have to be disclosed by location

Goodwill will have to be disclosed if the acquisition exceeds 5% of revenue

Which of the following will need to be disclosed under the proposals?

Both of the answers

Acquisition-date objectives and targets

Subsequent performance against acquisition-date objectives and targets

Neither of the answers

Which of these is proposed in terms of the disclosure, goodwill and impairment project? Proposal 1, goodwill should be revalued each year, with movements in reserves, or proposal 2, goodwill should be amortised over a maximum of 10 years

Both proposals are correct

Neither proposal is correct

Proposal 2 only is correct

Proposal 1 only is correct

Which of the following items does not currently need an annual impairment review?

Goodwill

An intangible asset with an indefinite life

An intangible asset with a life of 10 years

An intangible asset not yet ready for use

Which, if any, of the following statements is correct? Statement 1, an asset is impaired if its carrying amount exceeds its recoverable amount, or statement 2, the recoverable amount of an asset is the lower of value in use and fair value less costs to sell

Statement 1 only is correct

Neither statement is correct

Both statements are correct

Statement 2 only is correct

1 Unit