Discuss How The Accounting For Goodwill And Research &Amp

Development according to AASB 138 Intangible Assets

Question

Discuss how the accounting for Goodwill and Research Development according to AASB 138 Intangible Assets

provides incentives for managers to follow a ‘growth through acquisition’ or ‘growth through innovation’ strategy, assuming that management compensation is based on profits. Discuss the potential short- and long-term implications for the businesses.

Financial Accounting