Goodwill impairment

Schweser Vol 2 page 170 question 2: A co acquired H co recently using the purchase method. A is preparing to report its yr end results to include H according to IAS. Wchi of the following statement regarding goodwill is most accurate: B) A would test its goodwill annually to ensure the carrying value is not greater than the fair value. D) H would test its goodwill for impairments annually. Answer is B. But why D) is not correct?

**most accurate** because D is accurate, but B is most accurate! B is a subset of D

dinesh.sundrani Wrote: ------------------------------------------------------- > **most accurate** > > because D is accurate, but B is most accurate! > > B is a subset of D Hey, but i think B never mentions about impairment.

does H even have goodwill after it has been acquired? I would think that A would restate H’s A&L to FV, and if the purchase price > FV then the remainder is reported as goodwill on the ACQUIRER’s BS, in this case A.

dddolphin Wrote: ------------------------------------------------------- > dinesh.sundrani Wrote: > -------------------------------------------------- > ----- > > **most accurate** > > > > because D is accurate, but B is most accurate! > > > > B is a subset of D > > > Hey, but i think B never mentions about > impairment. Good way of thinking. Thanks!

H was acquired. why would it have to check for impairments?