AASB 3 Business Combinations and Goodwill Recognition
18 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is a major component of the AIS in the HR and payroll cycle?

  • Validate time and attendance data
  • Calculate employee compensation (correct)
  • Disburse taxes and miscellaneous deductions
  • Update master data
  • What is an example of time-based wage determination according to the text?

  • Professional firms
  • Commission-based incentives
  • Biometric readers (correct)
  • Fixed salary
  • What is a typical activity performed in the key payroll activities of the HR and payroll cycle?

  • Validate time and attendance data
  • Prepare payroll (correct)
  • Update master data
  • Disburse taxes and miscellaneous deductions
  • What HR management issue is highlighted in the text regarding employee records?

    <p>Changing status to inactive for terminated employees</p> Signup and view all the answers

    What is the definition of goodwill according to AASB 3 Business Combinations?

    <p>Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognised.</p> Signup and view all the answers

    Under what condition can goodwill be recognized as an asset?

    <p>When it is acquired externally as part of purchasing another business.</p> Signup and view all the answers

    Which entity can recognize externally acquired goodwill?

    <p>Only the acquiring entity.</p> Signup and view all the answers

    In the context of business combinations, what is goodwill?

    <p>Excess cost paid to purchase net assets over their fair value.</p> Signup and view all the answers

    What is the main difference between amortisation of intangible assets with finite useful life and indefinite useful life?

    <p>Intangible assets with finite useful life are amortised while those with indefinite useful life are not.</p> Signup and view all the answers

    What was the impact of Australia's adoption of IFRS in 2005 on research expenditure accounting?

    <p>Many items of research expenditure were capitalised prior to 2005, but not after.</p> Signup and view all the answers

    What is the significance of choosing between the cost or revaluation measurement model for PPE?

    <p>It has economic consequences for asset revaluations.</p> Signup and view all the answers

    What is the definition of fair value in the context of asset measurement?

    <p>The price that would be received to sell an asset in an orderly transaction between market participants at the measurement date.</p> Signup and view all the answers

    What is the key role of the Payroll Department?

    <p>Collecting and processing payroll information</p> Signup and view all the answers

    Which of the following is NOT a step in preparing payroll according to the text?

    <p>Disbursing employee bonuses</p> Signup and view all the answers

    What is the purpose of updating year-to-date (YTD) fields in the Payroll process?

    <p>To track total earnings and deductions for the year</p> Signup and view all the answers

    Which department uses Payroll Register to authorize payments?

    <p>Accounts Payable Department</p> Signup and view all the answers

    What is the purpose of Cloud-based Payroll according to the text?

    <p>To provide analytics in Payroll processing</p> Signup and view all the answers

    In the Reporting Cycle, what is the main function of General Ledger?

    <p>Collecting and processing transactions data</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Browser