Under IFRS, to determine if there is an impairment of goodwill, compare the
A) fair value of the identifiable assets to the book value of the assets.
B) fair value of the reporting unit to the carrying value of the reporting unit.
C) imputed current fair value of goodwill with the carrying value of goodwill.
D) carrying amount of the CGU with the recoverable amount.

Question

Quizplus · Accepted Answer

Under IFRS, goodwill impairment is assessed at the level of a cash-generating unit (CGU). The carrying amount of the CGU, including goodwill, is compared to its recoverable amount. If the carrying amount exceeds the recoverable amount, an impairment loss is recognized.

Under IFRS, to Determine If There Is an Impairment of Goodwill