Which of the Following Statements Regarding IFRS Impairment Testing for Goodwill

question 122

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 firm proportionally reduces the value of other assets.
• C)The firm can perform the fair value measurement for each 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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