When Is a Goodwill Impairment Loss Recognized

question 97

Multiple Choice

When is a goodwill impairment loss recognized?

• A) Annually on a systematic and rational basis.
• B) Never.
• C) If both the fair value of a reporting unit and its associated implied goodwill fall below their respective carrying values.
• D) If the fair value of a reporting unit falls below its original acquisition price.
• E) Whenever the fair value of the entity declines significantly.

---

Definitions:

Trend Income Statement

A financial statement that shows the changing dynamics of income over a series of periods, highlighting trends in revenue and expenses.

Base Year

A specific year or period used as a comparison point for financial analysis and indexing.

Information Filter

A process or system that selectively separates relevant data from irrelevant or less important information.

SEC Form 10K

SEC Form 10K is an annual report filed by publicly traded companies in the U.S., providing a comprehensive overview of the company's financial performance and condition.