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+--- Thread: Impairment of Goodwill (/showthread.php?tid=2804)
Impairment of Goodwill - andreas_el - 01-10-2006
Could someone please explain to me how exactly do you perform impairment testing on goodwill generated from the acquisition of the assets of another company?
Perhaps provide me with an illustrative example as well?
- Ali Akbar - 01-13-2006
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by andreas_el</i>
<br />COuld someone please explain to me how exactly do you perform an impairment testing on goodwill generated from the acquisition of the assets of another company?
Perhaps provide me with an illustrative example as well?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear.
It might be known to you that goodwill is not a standalone asset, rather it is interlinked with the assets acquired in business combination. So, the cash generating units are reviewed for impairment, if the goodwill is directly attributable to cash generating units being impaired, then attributed goodwill(to each cash generating unit(s)) shall be written off first. If the goodwill is not directly attributable to cash generating unit(s) being impaired then impairment loss shall be booked on pro rata basis.
ICAPians, the unparalleled..