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Goodwill should be tested for impairment annually right?
Is it acceptable to amortise it?no right?Q69 Axis n Co Pilot paper bpp kit
Part a is abt amortising goodwill and the answer dznt regard this as wrongThe expression “amortising goodwill” fell out of accountancy parlance with the issue of IFRS 3 revised. I can’t remember the date of the issue of the revised version but clearly it must have been after Axis was asked as a question in the exam
You are correct of course, goodwill is no longer subject to an amortisation charge. Instead, directors must annually review the goodwill position to determine whether there has been any impairment in the carrying value – the annual impairment review.
Bear in mind that, as each successive revision is issued to IAS / IFRS, it would then be an ideal World that saw all the previous years’ questions and answers amended, adopted, adapted to the new requirements. In fairness, you have to accept that such an exercise will never achieve 100% success
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