If the impairment loss is greater than the amount of reported goodwill,the firm first reduces unit's other assets to their fair value then subtracts the remaining loss from goodwill.

Question

Quizplus · Accepted Answer

In accounting, if the impairment loss is greater than the amount of reported goodwill, the firm first reduces the goodwill to zero and then allocates the remaining loss to other assets of the unit on a pro-rata basis.

If the Impairment Loss Is Greater Than the Amount of Reported