What does reporting unit mean on the CPA exam?
Reporting unit. An operating segment or one level below it, and the level at which goodwill is tested for impairment.
Defined against ASC 350-20-35-33.
Which CPA exam sections use reporting unit?
Reporting unit appears in the FAR section of the CPA exam.
Other terms defined against ASC 350-20
- goodwill: An asset representing the future economic benefits of acquired assets not separately identified, measured as consideration less identifiable net assets.
Related terms
- operating segment: A component of a public entity that may recognize revenues and incur expenses, whose operating results the chief operating decision maker reviews to allocate resources and assess performance, and for which discrete financial information is available.
- component unit: A legally separate organization for which the primary government is financially accountable.
- impairment: Writing an asset down because its carrying amount can no longer be recovered.