Firms must conduct impairment tests more frequently than annually when
A. other shareholders hold more than 50% interest.
B. a “more likely than not” expectation exists that a reporting unit will be sold or disposed of.
C. a specific unit does not have publicly traded stock.
D. using the equity method.
Answer:B
Firms must conduct impairment tests more frequently than annually when
A. other shareholders hold more than 50% interest. B. a “more likely than not” expectation exists that a reporting unit will be sold or disposed of. C. a specific unit does not have publicly traded stock. D. using the equity method.