The goodwill impairment test does not involve ________.
A)elimination of all goodwill as a consequence.
B)estimation and judgment on the part of management.
C)an opportunity for a "big bath."
D)an allocation of goodwill to reporting units.

Question

Quizplus · Accepted Answer

The goodwill impairment test does not always result in the elimination of all goodwill. If the carrying value of goodwill is determined to be higher than its fair value, only the excess is written off as impairment, and the remaining balance of goodwill is still reported on the balance sheet.

The Goodwill Impairment Test Does Not Involve ________