alleryStart learning →Which factor helps estimate the useful life of goodwill on amalgamation?
AAuditor's fee level
BDividend payout ratio
CExpected competitor actions
DNumber of directors
Answer & Solution
Correct answer: C. Expected competitor actions
The list of factors includes how competitors or potential competitors are expected to act against the business.
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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?