CERTYNEX IFRS ACADEMY

Why does the standard prohibit recognising the deferred tax liability arising from the initial recognition of goodwill that is not tax deductible?

Because goodwill is a residual amount that the liability would increase.

Because intangible assets, including goodwill, are excluded from the scope of IAS 12 as a matter of principle.

Because the tax base of goodwill equals its carrying amount.

Because that liability would never reverse.