As Part of Adopting IFRS,goodwill Acquired in a Business Combination

question 17

Multiple Choice

As part of adopting IFRS,goodwill acquired in a business combination is no longer amortised.Instead,the acquirer shall test goodwill for impairment (IFRS 3 Business Combinations) .When is goodwill considered to be impaired?

• A)If the recoverable amount of the cash generating unit is greater than the unit's carrying amount.
• B)If the recoverable amount of the cash generating unit is less than the unit's carrying amount.
• C)If the value in use of the cash generating unit is greater than the unit's carrying amount.
• D)If the fair value less costs to sell is greater than the unit's carrying amount.

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