When testing for the impairment of goodwill under IFRS, the recoverable amount of the cash-generating unit is calculated as ________.
A) the greater of the fair value of goodwill and the value in use of goodwill
B) the greater of the fair value less selling costs of the cash-generating unit and the value in use of the cash-generating unit
C) the lesser of the fair value of goodwill and the value in use of goodwill
D) the lesser of the fair value of the cash-generating unit and the value in use of the cash-generating unit

Question

Quizplus · Accepted Answer

Under IFRS, the recoverable amount of a cash-generating unit is the greater of its fair value less costs to sell and its value in use. This is used to test for impairment of goodwill.

When Testing for the Impairment of Goodwill Under IFRS, the Recoverable