Because goodwill cannot produce cash flows on its own, it must be tested together with the business it relates to. Under US GAAP, goodwill is assigned to a reporting unit, which is typically an operating segment or one level below. Under IFRS, it is allocated to a cash-generating unit, the smallest group of assets that generates largely independent cash inflows, or a group of such uni... https://thealgebragroup.com/what-is-goodwill-impairment