Which of the following does not identify a reporting unit for purposes of impairment testing?
A)Separate accounting.
B)Could be easily separated from the company.
C)Is managed as a separate segment.
D)Has similar assets.

Question

Quizplus · Accepted Answer

Similarity of assets is not a relevant factor in identifying a reporting unit for impairment testing. The other options, such as separate accounting, ease of separation from the company, and management as a separate segment, are all important criteria for identifying a reporting unit.

Which of the Following Does Not Identify a Reporting Unit