Asked by Joshua Najera on May 09, 2024
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Impairment losses on goodwill are never reversed.
Impairment Losses
Financial losses recorded when an asset's market price drops below its book value.
Goodwill
An intangible asset that arises when a business is acquired for more than the fair value of its identifiable net assets, representing future economic benefits from assets not separately identified.
Reversed
In accounting, this refers to the action of undoing or negating a journal entry that was previously made, often because it was an error.
- Recognize the accounting treatment and conditions for impairment losses and their reversibility.
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Learning Objectives
- Recognize the accounting treatment and conditions for impairment losses and their reversibility.
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