Question

QUESTION 6 What is the difference in the treatment of internally generated goodwill from the purchased goodwill under AASB 1387 Purchased goodwill is not amortised; whereas, internally generated goodwill caribe amortised over a period of 10 years. Purchased goodwill may be recorded as an asset, whereas internally generated goodwill may not. Purchased goodwill can be amortised over a period of 10 years; whereas, internally generated goodwill is recognised as an asset which cannot be amortised. Purchased goodwill is to be expensed in the period it is bought, whereas internally generated goodwill is to be deferred and amortised over a period of no less than 20 years. QUESTION 7 Discounting the future cash flows will have direct implications for the calculated value of recoverable amount and perhaps the need to change the value of an asset in direction. a downward an upward a visible None of the given options are correct.

Answer 1

Question 6:

Option 2 is the correct answer,

Because Internally generated goodwill not qualifies recognition criteria as per IAS 38.

But, purchases goodwill be recognized in books of accounts.

Question 7:

Option 2 is the correct answer, the discounted future cash flows will change the value of asset in upward direction.