alleryStart learning →What is the usual maximum amortisation period for goodwill on amalgamation?
A3 years
B5 years
C7 years
D10 years
Answer & Solution
Correct answer: B. 5 years
Goodwill is written off systematically over its useful life, estimated prudently at not more than five years unless justified.
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Related questions
In a merger, the Profit and Loss balance can alternatively go to which reserve?Consideration for amalgamation is the aggregate of securities issued and what else?AS 14 defines fair value as the amount for an asset exchange between whom?Statutory reserves keep their identity only when the transferee complies with what?When can amalgamation goodwill be amortised beyond five years?In the pooling method, conflicting accounting policies are handled how?In merger accounting, resultant assets, liabilities, capital and reserves roughly equal whIf a scheme departs from AS 14 on reserves, what must be disclosed?