A vice president for operations at Poncho Platforms asks for

A vice president for operations at Poncho Platforms asks for your help on a financial reporting issue concerning goodwill. Two years ago, the company suffered a goodwill impairment loss for its Chip Integration reporting unit. Since that time, however, the Chip Integration unit has recovered nicely and its current cash flows (and projected cash flows) are at an all-time high. The vice president now asks whether the goodwill loss can be reversed given the reversal of fortunes for the Chip Integration reporting unit.
1. Is impairment of goodwill reversible under U.S. GAAP? How about under IFRS? (Refer to FASB Topic 350, “Intangibles—Goodwill and Other,” and IAS 36, “Impairment of Assets.”)
2. Are goodwill impairment testing procedures the same under IFRS and U.S. GAAP? If not, how is goodwill tested for impairment under IFRS? (Refer to IAS 36, “Impairment of Assets.”)

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...