Asked by
Reagan Smith
on Oct 14, 2024
Verified
Goodwill arising on an equity investment is not required to be separately tested for impairment.
Goodwill
An intangible asset that represents the excess value of a company over the fair value of its identifiable assets and liabilities, often arising from acquisitions.
Impairment
A decrease in the recoverable value of an asset to below its carrying amount on the balance sheet, leading to a written down value.
- Acquire knowledge on the handling of goodwill and impairment when applying equity accounting principles.
Verified Answer
KP
Learning Objectives
- Acquire knowledge on the handling of goodwill and impairment when applying equity accounting principles.