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

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Definitions:

Moai Figures

Iconic monolithic statues located on Easter Island, created by the Rapa Nui people to represent deified ancestors.

Rapa Nui

The indigenous name for Easter Island, known for its monumental statues called moai, created by the early Rapa Nui people.

Poverty Bay

A bay on the east coast of the North Island of New Zealand, known for its historical significance and as the first landing place of Captain James Cook in New Zealand.

Caroline Islands

A widely scattered archipelago in the western Pacific Ocean, comprising both the Federated States of Micronesia and Palau.