Goodwill

Question 1

When is goodwill tested for impairment?

Answer 1

-At least annually or when circumstances indicate BV may be greater than FV

Question 2

Where is goodwill tested?

Answer 2

-At the reporting unit level

Question 3

Is reversal of goodwill impairment loss permitted?

Answer 3

-No

Question 4

What are the two quantitative steps for goodwill impairment testing?

Answer 4

1) Is FV > CV

2) Is CV of GW > Implied GW