medium · Financial Accounting assets

Under IFRS, which of the following statements about goodwill impairment is correct?

  1. Goodwill is tested at the reporting unit level, just as under US GAAP rules.
  2. Reversals of goodwill impairment losses are allowed once the unit's fair value recovers.
  3. The impairment loss is recognized for a cash-generating unit and cannot be reversed.
  4. Impairment losses are recognized first against tangible assets held within the CGU, not goodwill.

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