Goodwill Impairment Reviews
In line with IFRS and the U.S. GAAP, goodwill is not amortized. Accurate reporting on the value of goodwill from year to year requires companies to perform an impairment test. Impairment losses are, functionally, like amortization.
As per IAS 36, an entity is required to perform a quantified impairment test (to estimate the recoverable amount):
Goodwill impairment is an accounting charge that companies record when the carrying value of goodwill on the financial statements exceeds its fair value.
Our team of experts are able to assist our clients through this process of testing for impairment and reallocating goodwill where appropriate.