[jpat1980]

When goodwill is impaired with IFRS, it is tested at the Cash Generating Unit (CGU) whereby Goodwill is reduced not below 0 and the remaining amount (impairment) is allocated on a pro-rata basis to the identifiable assets…

For GAAP, goodwill is tested at the reporting unit… Can someone explain how the testing for the Reporting unit is compared to the testing of the CGU… When GW is impaired at the reporting unit, GW is reduced… but lets say for example GW is impaired beyond 0… does the additional amount get allocated on a pro-rata basis also similar to IFRS CGU?

Thank you in advance for your response.

AUD-68,74,88
REG-81
BEC-75
FAR-71,79
(Primary: Becker | Supplemental: Wiley MCQ's, Ninja Notes)

CFP - passed(3/2013)
(KIER, College for Financial Planning-cffp.edu, Jeff Rattiner Books and Notes)