Which of the following is a reason why goodwill impairment losses calculated using IFRS are expected to be higher than U.S. GAAP goodwill impairment losses?

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Under IFRS, goodwill impairment testing is performed at the cash-generating unit level, which is often smaller than the reporting segments used in U.S. GAAP. This can lead to more frequent and higher impairment losses because impairments are recognized earlier when they affect smaller units rather than waiting for them to impact larger segments.

Which of the Following Is a Reason Why Goodwill Impairment