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.

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Definitions:

Relatively Healthy

Describes a condition or state of being that is generally good or beneficial, especially in comparison to other similar circumstances or metrics.

Means-Tested

A method of determining eligibility for certain types of financial or social assistance based on the applicant's means or income and assets.

Medicaid

A social health care program for families and individuals with low income and limited resources in the United States, jointly funded by the state and federal governments.

Directly Employs

Directly employs refers to the act of hiring workers on the company's payroll, where the employment relationship is between the company and the employee without intermediaries.