When Testing for the Impairment of Goodwill Under IFRS, the Recoverable

question 57

Multiple Choice

When testing for the impairment of goodwill under IFRS, the recoverable amount of the cash-generating unit is calculated as ________.

• A) the greater of the fair value of goodwill and the value in use of goodwill
• B) the greater of the fair value less selling costs of the cash-generating unit and the value in use of the cash-generating unit
• C) the lesser of the fair value of goodwill and the value in use of goodwill
• D) the lesser of the fair value of the cash-generating unit and the value in use of the cash-generating unit

---

Definitions:

Global/Specific

This term contrasts between broad, overarching concepts (global) and distinct, precise elements (specific).

External Attributions

The process of attributing the cause of one's own or others' behavior to external factors, circumstances, or situations outside one's control.

Control

The ability to sway or guide the actions of individuals or the direction of happenings.

Luck

The concept of experiencing positive, negative, or unexpected outcomes without a clear cause or reason.