Under IFRS, to Determine If There Is an Impairment Loss

question 20

Multiple Choice

Under IFRS, to determine if there is an impairment loss, compare the

• A)fair value of the identifiable assets to the book value of the assets.
• B)fair value of the reporting unit to the carrying value of the reporting unit.
• C)imputed current fair value of goodwill with the carrying value of goodwill.
• D)carrying amount of the CGU with the recoverable amount.

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Definitions:

Consumers

Individuals or groups that purchase goods and services for personal use.

Service Company

A business entity that provides professional services or expertise instead of physical goods.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue.

Merchandise

Goods that are bought and sold in business transactions, often referred to in the context of retail or wholesale trading.