M4- Intangibles- Goodwill Flashcards
1
Q
What are the impairment indicators?
A
- Undiscounted future cash flow < CV
2. CF - FV = impairment loss
2
Q
Can impaired assets that recover be written back up
A
No
3
Q
What is the two steps
A
- calculate carrying value
2. Determine impairment amount
4
Q
How do you calculate CV
A
Cost
Finite lived- cost- amortization
5
Q
Which type of asset includes amoritization
A
Finite lived
6
Q
Calculating impairment loss for held for use
A
FV - CV
7
Q
Calculated impairment loss for finite lived
A
FV - CV = impairment loss
+ cost of disposal = total impairment loss
8
Q
What is the FV amount
A
FV or discounted cash flows
9
Q
What is the formula to determine goodwill impairment
A
Goodwill implied value - goodwill BV
