Syllabus B5

• Discuss the nature and possible accounting treatments of both internally generated and purchased goodwill.
• Distinguish between goodwill and other intangible assets.
• Define the criteria for the initial recognition and measurement of intangible assets. • Explain the principle of impairment tests in relation to purchased goodwill.
• Identify the circumstances in which a gain on a bargain purchase (negative goodwill) arises, and its subsequent accounting treatment.
• Describe and apply the requirements of IFRSs to internally generated assets other than goodwill (e.g. research and development).
• Describe the method of accounting specified by the IASB for the exploration for and evaluation of mineral resources.