Which of the following best represents the period in which testing will be performed for goodwill impairment by an audit client?
A)Year of final amortization.
B)Five year anniversary of acquisition.
C)As dictated by the internal auditors.
D)At least annually.

Question

Quizplus · Accepted Answer

According to Accounting Standards Codification (ASC) 350, goodwill impairment testing should be performed at least annually or if events or changes in circumstances indicate that the fair value of the reporting unit may be below its carrying amount. The other options (A, B, and C) do not align with the requirements of ASC 350.

Which of the Following Best Represents the Period in Which