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Basic Question 10 of 10

Regarding impairment, which statement(s) is (are) true?

I. The equity method requires the goodwill to be separately tested for impairment.
II. IFRS allows the reversal of impairment losses when the fair value later increases and there are some objective evidences.
III. Under U.S. GAAP, the impairment loss is recognized in the other comprehensive income of the stockholders' equity section.

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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

describe the classification, measurement, and disclosure under International Financial Reporting Standards (IFRS) for 1) investments in financial assets, 2) investments in associates, 3) joint ventures, 4) business combinations, and 5) special purpose and variable interest entities;

distinguish between IFRS and US GAAP in their classification, measurement, and disclosure of investments in financial assets, investments in associates, joint ventures, business combinations, and special purpose and variable interest entities;

analyze how different methods used to account for intercorporate investments affect financial statements and ratios.

CFA® 2025 Level II Curriculum, Volume 2, Module 10.