Goodwill – convergence or divergence?

How are the IFRS and US standards on leases diverged?

US GAAP records operating leases on the balance sheet, whereas IFRS doesn't

They are not

IFRS allows operating leases to be recorded in the income statement on a straight-line basis

US GAAP allows annual expenses to be recorded straight line in the income statement

What is the US Standard-setting body called?

IASB

US GAAP Foundation

FASB

IFRS Foundation

Which, if any, of the following areas are currently being suggested by the FASB? Area 1 - Introduce amortisation of goodwill, or Area 2 - Amortise goodwill over a 10-year period unless a firm can show a reason for another period

Area 1 only

Both areas

Area 2 only

Neither area

Which of the following features represents the FASB's next steps?

Identify which intangibles should not be subsumed into goodwill

Investigate the potential cap on useful lives of goodwill chosen by entities

Explore alternatives to the value in use calculation

Poll the board members on amortisation versus impairment only

Which of the following describes the current IASB approach from the 2020 Discussion Paper in respect of amortisation?

A hybrid approach of both amortisation and impairment

Allow entities to select amortisation or impairment-based approaches

Adopt the amortisation approach if US GAAP does

Maintain an impairment-only approach

Which of the following identifies the current thoughts on the timing of impairment reviews?

Most respondents regard impairment as unnecessary if amortisation is introduced

Most respondents are happy to remove the annual requirement and replace with an indicator-based approach

Most respondents want a quarterly review for public interest entities

Most respondents want annual reviews

Which, if any, of the following statements is correct? Statement 1 - Both bodies are looking to overhaul the components of the impairment calculation, or Statement 2 - The IASB are proposing a new calculation based on the 'pre-acquisition headroom' approach

Statement 1 only is correct

Statement 2 only is correct

Both statements are correct

Neither statement is correct

How many IASB board members voted against the introduction of amortisation?

8

6

14

10

Which, if any, of the following statements is/are true? Statement 1 - The IASB will ask the board for a decision on the reintroduction of goodwill impairment, or Statement 2 - Both boards received similar feedback regarding the amortisation/impairment discussion

Statement 1 only

Both statements

Statement 2 only

Neither statement

Which of these is NOT a reason suggested for introducing amortisation of goodwill?

To recognise the current impairment test model is not working

To reduce the pressure on the impairment test

To recognise the wasting nature of goodwill

To increase convergence of IFRS and US GAAP

Goodwill – convergence or divergence?

How are the IFRS and US standards on leases diverged?

What is the US Standard-setting body called?

Which, if any, of the following areas are currently being suggested by the FASB? Area 1 - Introduce amortisation of goodwill, or Area 2 - Amortise goodwill over a 10-year period unless a firm can show a reason for another period

Which of the following features represents the FASB's next steps?

Which of the following describes the current IASB approach from the 2020 Discussion Paper in respect of amortisation?

Which of the following identifies the current thoughts on the timing of impairment reviews?

Which, if any, of the following statements is correct? Statement 1 - Both bodies are looking to overhaul the components of the impairment calculation, or Statement 2 - The IASB are proposing a new calculation based on the 'pre-acquisition headroom' approach

How many IASB board members voted against the introduction of amortisation?

Which, if any, of the following statements is/are true? Statement 1 - The IASB will ask the board for a decision on the reintroduction of goodwill impairment, or Statement 2 - Both boards received similar feedback regarding the amortisation/impairment discussion

Which of these is NOT a reason suggested for introducing amortisation of goodwill?

You scored

0

out of

0

Test passed. Enter your details to download your certificate. Your certificate will also be sent to you by email.

Our sites

Useful links

Using this site

Contact us

Planned system updates