Menu
support@graduatecourseshelp.com
+1(805) 568 7317

assess for each of the following versions whether the liability has to be classified 613294

Impairment of non-deductible goodwill

Goodwill of £10 million (not tax-deductible) arose on a business combination in 2006. In accordance with IAS 12 no deferred tax liability was recognised on the taxable temporary difference of £10 million that arose on initial recognition of the goodwill. During the year ended 31 December 2013, following an impairment test, the carrying amount of the goodwill is reduced to £6 million.

No deferred tax is recognised on the new temporary difference of £6 million, because it is part of the temporary difference arising on the initial recognition of the goodwill. [IAS 12.21A].

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now