alleryStart learning →Firm X buys a bundle of assets that does not form a business. Goodwill on this deal is?
ARecognised in full
BTaken to reserves
CCharged to profit
DNot created at all
Answer & Solution
Correct answer: D. Not created at all
An asset acquisition is outside Ind AS 103, so the cost is spread over the assets and no goodwill can arise.
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