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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Definitions:

Altruism

The practice of selflessly caring for the welfare of others, often at a cost to oneself.

Fundamental Attribution Error

The assumption that others act predominantly on the basis of their dispositions, even when there is evidence suggesting the importance of their situations.

Dispositions

Inherent qualities of mind and character that influence an individual's habitual responses and behavior.

Behavioral Perspective

An approach in psychology that focuses on observable behaviors and the ways in which they are learned, often through conditioning.