Goodwill impairment is a measurement problem that should be addressed when?
A)upon significant adverse change in the business environment.
B)every other year on a scheduled and consistent basis.
C)initially,in accordance with SFAS No.146.
D)in conjunction with the recording of restructuring liabilities.

Question

Quizplus · Accepted Answer

Goodwill impairment should be addressed upon significant adverse change in the business environment, such as a decline in market value or changes in management. This is required by accounting standards and is an important step in accurately valuing assets and recognizing potential losses. A scheduled and consistent basis or in conjunction with recording restructuring liabilities may not capture the true state of the business environment and thus not reflect the accurate value of goodwill. Initial measurement in accordance with SFAS No.146 is important, but ongoing assessments are also necessary.

Goodwill Impairment Is a Measurement Problem That Should Be Addressed