If the market value of the reporting unit is below book value and a significant amount of goodwill exists, the presumption is that there has been an impairment of goodwill.

Question

Quizplus · Accepted Answer

When the market value of a reporting unit falls below its book value and there is significant goodwill, it suggests that the goodwill may not be recoverable, indicating potential impairment.

If the Market Value of the Reporting Unit Is Below