F4M8 Flashcards
1
Q
Goodwill
A
cannot be separately identified on balance sheet
excess earnings power
2
Q
maintaining goodwill
A
expensed as incurred
3
Q
Goodwill impairment
A
difference between FV and CV
cannot be reversed
4
Q
Goodwill is calculated at what level
A
reporting unit
5
Q
Impairment of goodwill cannot exceed
A
goodwill amount
6
Q
Steps to goodwill impairment
A
- Qualitative evaluation
2. Quanitative evaluation
7
Q
Quantitative evaluation goodwill impairment
A
if the likelihood of FV being lower than CV is 50% or higher, then you have to test impairment
8
Q
Private Company Goodwill alternative
A
MAY elect to amortize goodwill over 10 years or less, but must disclose
why would they want to do this, because additional impairment is less likely to occur
