Chow Company purchased the Chee Division in 2011 and appropriately recorded HK$5,000,000 of goodwill related to the purchase.On December 31, 2011, the recoverable amount of Chee Division is HK$58,000,000 and it is carried on Chow's books for a total of HK$54,000,000, including the goodwill.What goodwill impairment should be recognized by Chow in 2011?

Question

Quizplus · Accepted Answer

The recoverable amount (HK$58,000,000) is greater than the carrying amount (HK$54,000,000), so no impairment of goodwill is needed.

Chow Company Purchased the Chee Division in 2011 and Appropriately