Which of the following statements best describes when previously recognized goodwill impairment may be reversed?
A)Reversals are permitted under both Private Entity GAAP and IFRS.
B)Reversals are permitted under Private Entity GAAP but are not allowed under IFRS
C)Reversals are not permitted under either standard.
D)None of these

Question

Quizplus · Accepted Answer

Under both Private Entity GAAP and IFRS, reversals of previously recognized goodwill impairment are not permitted. Once goodwill is impaired, it cannot be reversed.

Which of the Following Statements Best Describes When Previously Recognized