Carillion collapse increases scrutiny of goodwill impairment rules

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 re-read the article before attempting the questions again

  1. Which of these represents the correct accounting treatment for internally-generated intangible assets per IAS 38 Intangible Assets?

  2. Which of the following represents the correct treatment for acquired goodwill under IFRS 3 Business Combinations?

  3. When should impairment of goodwill be recognised under the existing IFRS 3 treatment?

  4. Which, if any, of the following topics were also being discussed at the global preparers forum? Topic 1 - The primary financial statements project, or Topic 2 - Business entities under common control

  5. Which of the following is true regarding the proposed total headroom approach to impairment?

  6. What is the current treatment for intangibles acquired as part of a business combination?

  7. Which of the following is a proposed benefit of the total headroom approach to impairment?

  8. Which, if any, of the following statements is correct? Statement 1 - Wasting intangible assets cannot be easily separated from the entity as a whole, or Statement 2 - Organically replace intangible assets have finite lives and lead to identifiable revenue streams

  9. Which of the following is not one of the approaches to intangibles acquired as part of a business combination?

  10. Which, if any, of the following statements is correct regarding the subsequent treatment of goodwill under IFRS 3 is/are true? Statement 1 - Post-acquisition increases in acquired goodwill should not be recognised, Statement 2 - Impairment losses on goodwill should be recognised as an expense in the statement of profit or loss