The New IASB Standard Issued with Respect to the Treatment

Multiple Choice

The new IASB standard issued with respect to the treatment of negative goodwill requires that:

A) it must be recognized in income immediately as an extraordinary item.
B) it must be recognized in income immediately but not necessarily as an extraordinary item.
C) it can be deferred and amortized over a maximum of 40 years.
D) it must be reflected as an increase in Liabilities and a Reduction in Capital for the Parent Company.