Asked by Cecilee Humphries on Jun 14, 2024
Verified
There is no limit to the amount of impairment loss write-down of the assets of a cash-generating unit (CGU).
Impairment Loss
The reduction in the recoverable value of an asset or cash-generating unit below its carrying value.
- Recognize the treatment of goodwill and impairment in consolidated financial statements.
Verified Answer
NC
Nathaniel CooperJun 14, 2024
Final Answer :
False
Explanation :
There is a limit to the amount of impairment loss write-down of the assets of a cash-generating unit. The limit is the carrying amount of the CGU after the impairment loss is recognized. It cannot be reduced below zero.
Learning Objectives
- Recognize the treatment of goodwill and impairment in consolidated financial statements.