Goodwill

Question 1

Impairment

Answer 1

1. compare fair value of reporting unit VS carrying amount of reporting unit

if FV is > carrying amount = not impaired

if FV < CV = perform step 2

• in determining fair value - use highest valuation premise
• highest of in use or in exchange

2. compute implied value of goodwill of the reporting unit

Fair value of total assets
less: fv of net assets