Ask Question
BusinessBusiness
1 April, 00:05

When is a goodwill impairment loss recognized? a. Annually on a systematic and rational basis. b. Never When both the fair value of a reporting unit and its associated implied goodwill fall below their respective carrying values. c. If the fair value of a reporting unit falls below its original acquisition price. d. Whenever the fair value of the entity declines significantly.

+4
Answers (1)
  1. 1 April, 00:12
    0
    The correct answer is letter "C": When both the fair value of a reporting unit and its associated implied goodwill fall below their respective carrying values.

    Explanation:

    Impairment Loss is the decrease in an asset's net carrying value that exceeds the future undisclosed cash flow it should generate. The net carrying value is an asset's acquisition cost minus depreciation. Impairment occurs when a company sells or abandons an asset that is no longer beneficial.

    Thus, a goodwill impairment loss is recognized when the goodwill's net carrying value is below its fair value and the expected cash flow it was to generate.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “When is a goodwill impairment loss recognized? a. Annually on a systematic and rational basis. b. Never When both the fair value of a ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
One of the least desirable and routine tasks members of your team must do is taking minutes (notes) at team meetings.
Answers (1)
The cost of the next best alternative use of money, time, or resources, when one choice is made rather than another Question 7 options: opportunity cost User Assessment Alternative Banking Search Cost
Answers (1)
A specific brand name has an 80% recognition rate. ten people are randomly surveyed in an area to determine if the rate is valid. what is the probability that exactly 8 people recognize the brand?
Answers (1)
1. Why does the sushi robot make sense? A. It never rusts out. B. It is faster than a human. C. It replaces humans altogether. D. It costs less than other machines.
Answers (1)
Which of the following is incorrect? a. Capital is reduced by a loss b. Profit does not affect capital c. If there is no profit there is no capital d. A loan received will reduce capital
Answers (1)
New Questions in Business
A firm realizes that the market price has fallen below its average total costs, and it is now earning a loss. what is the best action for the firm to take in the short run?
Answers (1)
Fixed expenses: a. includes labor, raw materials, and commissions. b. can be estimated by taking into consideration the production. c. are incurred regardless of sales volume. d. must be linked to strategy in the business plan
Answers (1)
4) Which of the following is least likely to be your primary health care provider? a. an allergist b. an internist c. an obstetrician-gynecologist
Answers (1)
T/F A macroeconomist would be concerned with the following statement. "Two major hurricanes caused significant damage to the eastern seaboard and led to a fall in GDP and a rise in unemployment in the U. S. economy."
Answers (1)
At the beginning of the year, Mitchum Enterprises allows for estimated uncollectible accounts of $14,000. By the end ofthe year, actual bad debts total $15,000. Record the write-off to uncollectible accounts.
Answers (1)
Home » Business » When is a goodwill impairment loss recognized? a. Annually on a systematic and rational basis. b. Never When both the fair value of a reporting unit and its associated implied goodwill fall below their respective carrying values. c.
Sign Up Forgot Password?