alleryStart learning →The recoverable amount of goodwill as an individual asset:
ACannot be found; its unit is tested
BEquals its original purchase price
CEquals the sale price of the business
DIs always taken to be zero value
Answer & Solution
Correct answer: A. Cannot be found; its unit is tested
Goodwill does not generate cash flows independently, so recoverability is tested through the cash-generating unit to which it belongs.
Keep practising AS 28 Impairment of Assets
Browse all AS 28 Impairment of Assets questions for CA Inter, or explore more Accounting topics.
Related questions
An enterprise applying AS 17 discloses impairment losses by:A revalued asset's market value basis and negligible disposal costs mean the asset is:For a small and medium-sized company, value in use may be measured by:Impairment of deferred tax assets is dealt with under:Disclosing key assumptions is:If recoverable amount is value in use, a material loss disclosure includes:A class of assets under AS 28 means a grouping of assets of:AS 28 disclosures of impairment losses are required for each: