Which of the following statements regarding IFRS impairment testing for goodwill is false? Group of answer choices The firm can perform the fair value measurement for each cash-generating unit at any time during the fiscal year, as long as it uses the measurement date consistently. If the impairment loss is greater than the book value of goodwill, the cash-generating unit proportionally reduces the carrying value of other assets. IFRS requires an impairment test for goodwill whenever there are significant impairment indicators. The firm reports an impairment loss when the recoverable amount of the cash-generating unit is less than the carrying value of the cash-generating unit, including goodwill.
Which of the following statements regarding IFRS impairment testing for goodwill is false? Group of answer choices The firm can perform the fair value measurement for each cash-generating unit at any time during the fiscal year, as long as it uses the measurement date consistently. If the impairment loss is greater than the book value of goodwill, the cash-generating unit proportionally reduces the carrying value of other assets. IFRS requires an impairment test for goodwill whenever there are significant impairment indicators. The firm reports an impairment loss when the recoverable amount of the cash-generating unit is less than the carrying value of the cash-generating unit, including goodwill.
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
Problem 6QE
Related questions
Question
Which of the following statements regarding IFRS impairment testing for goodwill is false?
Group of answer choices
The firm can perform the fair value measurement for each cash-generating unit at any time during the fiscal year, as long as it uses the measurement date consistently.
If the impairment loss is greater than the book value of goodwill, the cash-generating unit proportionally reduces the carrying value of other assets.
IFRS requires an impairment test for goodwill whenever there are significant impairment indicators.
The firm reports an impairment loss when the recoverable amount of the cash-generating unit is less than the carrying value of the cash-generating unit, including goodwill.
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