medium · Financial Accounting assets
Under IFRS, which of the following statements about goodwill impairment is correct?
- Goodwill is tested at the reporting unit level, just as under US GAAP rules.
- Reversals of goodwill impairment losses are allowed once the unit's fair value recovers.
- The impairment loss is recognized for a cash-generating unit and cannot be reversed.
- Impairment losses are recognized first against tangible assets held within the CGU, not goodwill.
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