Under ASPE, which of the following statements best describes when goodwill should be tested for impairment?
A) Goodwill should be tested for impairment when events or changes in circumstances indicate that impairment may have occurred.
B) Goodwill should be tested annually for impairment regardless of the circumstances.
C) Goodwill should be tested for impairment annually and whenever events or changes in circumstance indicate that impairment may have occurred.
D) Goodwill should only be tested for impairment when the company follows a policy to amortize its goodwill.

Question

Quizplus · Accepted Answer

Under Accounting Standards for Private Enterprises (ASPE) in Canada, goodwill should be tested for impairment when there are indications or triggers that suggest the asset might be impaired, rather than on a mandatory annual basis or only when a company chooses to amortize goodwill. This approach allows for flexibility and is based on the occurrence of specific events or changes in circumstances.

Under ASPE, Which of the Following Statements Best Describes When