Under IFRS, to Determine If There Is an Impairment of Goodwill

question 68

Multiple Choice

Under IFRS, to determine if there is an impairment of goodwill, 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:

Kickoff Meetings

Kickoff meetings are initial meetings that mark the beginning of a project or phase, where goals, expectations, roles, and guidelines are discussed among team members and stakeholders.

Project Office

A physical or virtual location where project management activities and administrative support for a project are centralized.

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments, calculating the discount rate that makes the net present value of all cash flows equal to zero.

Profitability

The ability of a business or activity to generate income in excess of its expenses, resulting in a profit.