Which of the following statements is correct with respect to the Goodwill implied from an Investment accounted for using the Equity Method?

Question

Quizplus · Accepted Answer

Impairment of Goodwill is tested when events or changes in circumstances indicate that the carrying amount of the investment may not be fully recoverable. In the equity method, impairment is deemed to have occurred if the market value of the investment has permanently declined below the investor's carrying value. Amortization of Goodwill is not applicable in the equity method. Adjustments are made to the investment account whenever there is a change in the investor's share of the investee's net assets, regardless of whether there is a significant drop in market value.

Which of the Following Statements Is Correct with Respect to the Goodwill