When is a goodwill impairment loss recognized?
A) Only after both a quantitative and qualitative assessment of the fair value of goodwill of a reporting unit.
B) After only definitive quantitative assessments of the fair value of goodwill is completed.
C) After only definitive qualitative assessments of the fair value of goodwill is completed.
D) If the fair value of a reporting unit falls to zero or below its original acquisition price.
E) Never.

Question

Quizplus · Accepted Answer

A goodwill impairment loss is recognized after a quantitative assessment determines that the fair value of goodwill is less than its carrying amount.

When Is a Goodwill Impairment Loss Recognized