Under IFRS, How Often Should Goodwill Acquired in a Business

question 2

Multiple Choice

Under IFRS, how often should goodwill acquired in a business combination be tested for impairment?

• A)Whenever there is an indication of impairment
• B)Whenever there is a change in circumstances in the business
• C)At least once a year
• D)At least once every two years

---

Definitions:

Asch

Refers to Solomon Asch, known for his research on conformity, specifically the experiments demonstrating the influence of group pressure on opinions.

Crutchfield Situation

A technique used in social psychology experiments to study conformity, where individuals must make judgments while being exposed to the presumed opinions of others.

Asch Situation

An experiment by Solomon Asch that demonstrated the power of conformity in groups, where individuals often agree with a consensus even if it is clearly incorrect.

Asch Experiment

A series of psychological experiments conducted by Solomon Asch studying if and how individuals yield to or defy a majority group and the effect of such influences on beliefs and opinions.