Assuming that other assets have been properly valued, if the market value of the reporting unit is equal to the carrying value of the assets of the reporting unit, the presumption is that goodwill has been impaired.

Question

Quizplus · Accepted Answer

The presumption is not that goodwill has been impaired if the market value of the reporting unit is equal to the carrying value of its assets. Impairment testing for goodwill involves comparing the fair value of the reporting unit with its carrying value, including the carrying value of goodwill. If the carrying value of goodwill exceeds its implied fair value, then impairment has occurred.

Assuming That Other Assets Have Been Properly Valued, If the Market