When Is a Goodwill Impairment Loss Recognized

question 97

Multiple Choice

When is a goodwill impairment loss recognized?

• A) Annually on a systematic and rational basis.
• B) Never.
• C) If both the fair value of a reporting unit and its associated implied goodwill fall below their respective carrying values.
• D) If the fair value of a reporting unit falls below its original acquisition price.
• E) Whenever the fair value of the entity declines significantly.

---

Definitions:

Illness Anxiety Disorder

A disorder characterized by excessive worry about having a serious illness, often with little or no medical evidence.

Cognitive-Behavioral

Relating to a type of psychotherapeutic treatment that helps patients understand the thoughts and feelings that influence behaviors, aiming to modify dysfunctional thinking and behavior.

Model

A representation, usually in smaller scale or simpler terms, used to explain, control, or predict more complex phenomena.

Muscle Contraction Headache

A headache caused by the narrowing of muscles surrounding the skull. Also known as tension headache.