The steps involved in testing goodwill for impairment using ASPE do not include: a. comparing the...

The steps involved in testing goodwill for impairment using ASPE do not include:

a. comparing the fair value of the reporting unit against its carrying amount including goodwill.

b. calculating the implied current fair value of goodwill.

c. comparing the current implied fair value of goodwill with its carrying amount.

d. all of the above steps are involved in testing goodwill for impairment using ASPE.

Expert Solution

ASPE

Impairment Test done whenever events or changes in circumstances indicate that the Carrying Amount of the Reporting unit to which the Goodwill is assigned may exceed the Fair Value of the Reporting Units.

For the purpose of Impairment test , acquired Assets and assumed liabilties are assigned to a Reporting units,as of the date of Acquisition,when

1)The asset is employed in or the liability relates to ,the operation of the reporting unit

2)The assets or liability is considered in determining the Fair value of the reporting units.

The steps involved in testing goodwill for impairment using ASPE Include all of the given (a), (b) ,(c) that is

a. comparing the fair value of the reporting unit against its carrying amount including goodwill.

b. calculating the implied current fair value of godwill

c. comparing the current implied fair value of godwill with its carrying amount.

So the correct option is Option (d) that is all the steps are involved in testing goodwill for impairment using ASPE.

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ekkarill92 answered 2 years ago

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