Question

7. Topic: Goodwill If impaired goodwill subsequently regains its value:
a. It can be written up to its new value
b. The loss recovery cannot be recognized
c. It can be written up, but only to its original value
d. The company may choose whether or not to recognize the recovery

8. Topic: Goodwill Goodwill is required to be tested for impairment:
a. Only when the overall economy is bad
b. Only when there is new competition
c. Every year
d. Only when there has been a series of operating losses

Answer 1

7. Answer (b)

If impaired goodwill subsequently regains its value the loss recovery cannot be recognised.

8. Answer (c)

Goodwill is required to be tested for impairment every year.