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If the initial allocation of goodwill acquired in a business combination cannot be COMPLETED before the end of the annual period in which the BC is effected:
AAllocation must be completed before the end of the FIRST annual period beginning after the acquisition date — and during the measurement period, provisional allocations may be revised
BAllocation is never finalised
CGoodwill is split equally across all CGUs by default
DGoodwill is written off immediately
Answer & Solution
Correct answer: A. Allocation must be completed before the end of the FIRST annual period beginning after the acquisition date — and during the measurement period, provisional allocations may be revised
Ind AS 36 paragraph 84: allocation must be completed by the end of the first annual period beginning AFTER the acquisition date — i.e. within the Ind AS 103 12-month measurement period. Provisional allocations can be revised retrospectively within that window.
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