Goodwill recognized in a business combination must be allocated across a firms identified reporting units. For a consolidated entity with multiple reporting units, when is goodwill considered to be impaired?

Multiple Choice

• When the sum of the fair values of all reporting units within a business combination exceeds the sum of their respective carrying amounts

• When the sum of the carrying amounts of all reporting units within a business combination exceeds the sum of their respective fair values

• When any individual reporting unit's fair value exceeds its carrying amount

• When any individual reporting unit's carrying amount exceeds its fair value