medium · Financial Accounting assets

Under ASC 360, if an impairment loss is recognized for an asset group, how is the loss allocated among the individual assets in that group?

  1. To the assets with the highest fair value first
  2. Entirely to goodwill first, then pro-rata to other assets
  3. Pro-rata based on the relative carrying amounts of the long-lived assets in the group
  4. The company has the discretion to allocate the loss to whichever assets it chooses

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