Goodwill impairment under IFRS is:

A Reversed when value recovers

B Recognized when carrying amount exceeds recoverable amount and cannot be reversed

C Never recognized

D Amortized annually

✓ Correct Answer: Option B

Under IFRS, goodwill impairment losses are recognized but can never be reversed in subsequent periods.

💡 Why is B) the correct answer?

The correct answer to the question "Goodwill impairment under IFRS is:" is Option B: Recognized when carrying amount exceeds recoverable amount and cannot be reversed.

The other options — A) Reversed when value recovers, C) Never recognized, D) Amortized annually — are incorrect for this CFA Exam Prep question. As explained above: Under IFRS, goodwill impairment losses are recognized but can never be reversed in subsequent periods.

📚 About This CFA Exam Prep Practice Question

This 3-level CFA Exam Prep question from the Financial Reporting & Analysis topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CFA Exam Prep practice test or use flashcards for spaced repetition review.

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Goodwill impairment under IFRS is:

✓ Correct Answer: Option B

📚 About This CFA Exam Prep Practice Question

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