Under IFRS,there is never an impairment loss related to goodwill when ________.
A)the value in use of the cash-generating unit is less than its fair value less cost to sell
B)the value in use of the cash-generating unit is greater than its fair value less cost to sell
C)the recoverable amount of the cash-generating unit less than the carrying value of the cash-generating unit
D)the recoverable amount of the cash-generating unit is greater than the carrying value of the cash-generating unit

Question

Quizplus · Accepted Answer

Under IFRS, goodwill is tested for impairment by comparing its carrying value to its recoverable amount. If the recoverable amount of the cash-generating unit is greater than the carrying value of the cash-generating unit, then there is no impairment loss related to goodwill. Therefore, option D is the correct answer.

Under IFRS,there Is Never an Impairment Loss Related to Goodwill