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:

Spinal Cord

A slender, elongated structure composed of nerve tissue that stretches from the medulla oblongata in the brainstem to the lumbar segment of the spine.

Nerve Tissue

A type of biological tissue that is responsible for communication within the body through electrical and chemical signals.

Cerebral Hemisphere

One of the two symmetrical halves of the brain, each responsible for controlling the opposite side of the body and specialized in different functions.

Speech

The expression of thoughts and feelings by articulate sounds, typically using language that is understood by others.