Question

Post-merger, the acquirer reports a goodwill of ₹120 crore, 40% higher than the net assets acquired. Upon impairment testing, only ₹10 crore is recoverable. What should be the accounting treatment?

A Impair ₹110 crore immediately
B Amortize goodwill over 5 years
C Defer recognition of impairment loss
D Revalue the assets
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