The impairment test for goodwill is conducted based on the cash-generating unit to which the goodwill has been assigned.
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The impairment test for
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- The impairment test for goodwill is conducted based on the cash-generating unit to which the goodwill has been assigned. After an impairment loss is recorded for goodwill, the recoverable amount becomes the basis for the impaired asset and is used to calculate amortization in future periods. options : both statement false first statement true and second statement false fisrt statement false and second statement ttrue . both sttament true(b) (i) Briefly consider the role of cash generating units (CGU) in the impairment of Goodwill.Why are the impairment rules for goodwill different than for other assets? Explain.
- For which of the following accounts would the matching concept be the most appropriate?a. Cost of goods sold.b. Research and development.c. Depreciation expense.d. Sales.Tangible assets are first recorded at: Multiple Choice cost minus residual (or salvage) value. the amount of cash paid for them. current market value or resale value. all costs to acquire them and prepare them for use.How is the goodwill impairment calculated? I thought it was by adding assets and subtracting the accounts payable for net assets. Then adding goodwill and subtracting the fair value
- With reference to IAS 36, Impairment of Assets, a.Define a Cash generating units(CGU) and explain the purpose of an impairment test b)Allocate impairment loss between the assets of CGU and pass the journal to record the impairment lossDistinguish between internally generated goodwill and purchased goodwill and explain how each of them may be treated in line with standard accounting principles.What amount of goodwill will be reported?
- What type of "event" results in goodwill being recorded on a company's balance sheet? How is goodwill evaluated to determine whether this specific asset is impaired? If it is deemed to be impaired, what actions does a company need to take?What is a basket purchase of assets? When a basket purchase is made, how is cost assigned to individual assets?Which one of the following is not a method of valuation of goodwill? a. Super profit method b. Average profit method c. Revaluation method d. Capitalization method