Under IFRS, the firm reports a loss from impairment of goodwill when ________.
A) the recoverable amount of the cash-generating unit is less than the carrying value of the cash-generating unit including goodwill
B) the book value of goodwill is greater than the fair value of goodwill
C) the three-step impairment test indicator shows goodwill has been impaired
D) the two-step impairment test indicator shows goodwill has been impaired

Question

Quizplus · Accepted Answer

Under IFRS, an impairment loss for goodwill is recognized when the recoverable amount of the cash-generating unit is less than its carrying amount, including goodwill.

Under IFRS, the Firm Reports a Loss from Impairment of Goodwill