Under Accounting Guidance Issued by the FASB in 2017,a Goodwill

question 83

True/False

Under accounting guidance issued by the FASB in 2017,a goodwill impairment loss will be recognized when the fair value of the reporting unit is less than its carrying value even if the difference is attributable to the fair value of other assets in the reporting unit being less than their respective carrying values.

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Definitions:

Competitive Industry

An industry characterized by multiple firms competing with each other by offering similar products or services, aiming to attract consumers and gain market share.

Perfect Competition

A market structure characterized by a complete absence of rivalry among the sellers and perfect information among buyers and sellers.

Short Run

A period in economic analysis where at least one input (such as plant size) is fixed and cannot be changed.

Equilibrium Price

The market price at which the quantity of goods supplied equals the quantity of goods demanded.