However, if the equity method is used, he states:
- Goodwill must be separately tested for impairment.
- Impairment losses cannot be reversed even if fair value later increases.
- Impairment losses exceeding the goodwill value are allocated pro-rata to the unit’s non-cash assets.
Q. Which of Casado’s three statements regarding the potential impairment of the investment in Ariana is most accurate? Statement:
- 2
- 1
- 3
Solution
A is correct. Both IFRS and US GAAP prohibit the reversal of impairment losses recognized using the equity method, even if the fair value later increases. Under the equity method goodwill is included in the value of the investment and is not tested separately. Impairment losses exceeding goodwill are allocated pro-rata to the unit’s non-cash assets when the investor has control over the investee, not under the equity method.
B is incorrect because IFRS includes goodwill in the carrying value of the investment, so it is not separately tested for impairment.
C is incorrect because impairment losses exceeding goodwill are allocated pro-rata to the unit’s non-cash assets.
首先3为什么不对，答案解释似乎就是题干？其次 1答案解释ifrs goodwill 不可以单独测试减值，GAAP可以吗？
