Which of the Following Statements Regarding IFRS Impairment Testing for Goodwill

question 7

Multiple Choice

Which of the following statements regarding IFRS impairment testing for goodwill is false?

• A) The firm reports an impairment loss when the recoverable amount of the cash-generating unit is less than the carrying value of the cash-generating unit, including goodwill.
• B) If the impairment loss is greater than the book value of goodwill, the cash-generating unit proportionally reduces the carrying value of other assets.
• C) The firm can perform the fair value measurement for each cash-generating unit at any time during the fiscal year, as long as it uses the measurement date consistently.
• D) IFRS requires an impairment test for goodwill whenever there are significant impairment indicators.

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