Proudfoot Ltd

question 1

Multiple Choice

Proudfoot Ltd. acquired all the shares of Jacob Ltd. several years ago. In conducting its goodwill impairment test for the current year, Proudfoot has determined that there has been an impairment related to revalued assets. On Proudfoot's consolidated financial statements, where should this impairment be reported?

• A)As part of profit or loss
• B)As part of other comprehensive income
• C)As an adjustment to retained earnings
• D)As a separate amount under shareholders' equity

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