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Under IFRS and US GAAP, goodwill of public companies is
AWritten off in a year
BNot amortised at all
CAmortised over 5 years
DAmortised over 40 years
Answer & Solution
Correct answer: B. Not amortised at all
Goodwill is treated as having an indefinite useful life, so it is tested rather than amortised.
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