The Impairment Test for Goodwill Must Be Conducted

question 22

Multiple Choice

The impairment test for goodwill must be conducted:

• A)annually or more frequently if there is an indication the cash-generating unit may be impaired.
• B)on 1 January each year.
• C)once every three years at balance date.
• D)only if it is reasonable to expect that goodwill has been impaired.

---

Definitions:

Combining Forms

In language, particularly in medical terminology, morphemes that are combined with other words or morphemes to form new words.

Word Root

The base part of a word from which other words can be formed, often derived from Latin or Greek.

Combining Form

In language, a morpheme that combines with other morphemes to form a word, especially in the context of scientific and medical terminology.

Weakness

A reduction in the strength or efficacy of something, such as physical power, structural integrity, or an argument.