Which of the Following Statement Is Correct Regarding Impairment of Goodwill

question 8

Multiple Choice

Which of the following statement is correct regarding impairment of goodwill?

• A)Impairment of goodwill is tested at least annually under IFRS but not U.S.GAAP by comparing the carrying amount to recoverable value.
• B)Under IFRS,Goodwill is allocated to cash generating units and can be larger than an operating segment.
• C)Under U.S.GAAP,Goodwill is allocated to reporting unit level which may contain multiple cash generating units.
• D)None of the above.

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Definitions:

Contract Force

The legal binding power of a contract that obliges the parties involved to fulfill their respective duties as outlined.

Ratification

The act of formally approving or confirming a decision or agreement, making it officially valid.

Adoption Or Affirmance

The act of accepting, endorsing, or formally confirming a previous decision or action, especially in a legal context.

Prior Act

A Prior Act refers to an action or decision made before a current point in time, which may have legal or regulatory implications.