Testing for goodwill impairment:

Multiple Choice

• requires both qualitative and quantitative tests.

• requires computing implied goodwill, which is the amount of fair value of the reporting unit less the book value of the separately identifiable net assets of the reporting unit.

• necessitates determining if the reporting unit itself is impaired after calculating implied goodwill.

• may result in an impairment charge defined as the difference between the goodwill reflected for the reporting unit in the consolidated balance sheet and the reporting units implied goodwill.