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):

• if there is an indication of impairment for the individual asset or CGU (indicator-based impairment) at the end of each reporting period
• and annually for the following categories of assets, irrespective of whether there is an indication of impairment:
• intangible assets with an indefinite useful life
• intangible assets not yet available for use, and
• goodwill acquired in a business combination

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.