Which one of the following statements is not accurate about goodwill impairment valuations?
A) Goodwill arising from acquisitions can be netted into one test at the operating segment level, but not netted at the company level.
B) Market valuation may be volatile. A temporary decline in market value may not be a good indicator of FMV.
C) FMV might not exist, might require independent appraisals by investment bankers or estimates using cash flow and discounted present value factors.
D) No assumptions are required about competition, economic development, product placement, and so forth.

Question

Quizplus · Accepted Answer

This statement is not accurate as assumptions about competition, economic development, product placement, and other factors are required in goodwill impairment valuations. These assumptions are necessary to estimate future cash flows and discount them to their present value to determine the fair value of the reporting unit.

Which One of the Following Statements Is Not Accurate About