Goodwill is said to be impaired if the carrying value of the CGU including Goodwill is greater than its Fair Value.

Question

Quizplus · Accepted Answer

This is a correct statement in accordance with IFRS 3 - Business Combination. If the carrying value of the Cash Generating Unit (CGU) including Goodwill exceeds its Fair Value, then the Goodwill is considered impaired and needs to be written down. However, if the carrying value of the CGU is less than its Fair Value, then Goodwill isn't impaired.

Goodwill Is Said to Be Impaired If the Carrying Value