The accounting scandals that became prominent in the early 2000s gave rise to the requirement for public companies and large private company to deal with impaired goodwill. The definition of impaired goodwill is “goodwill that has become or is considered to be of lower value than at the time of purchase. From an accounting perspective, when the carrying value of the goodwill exceeds the fair value, then it is considered to be impaired” (Investopedia, 2014). Many factors such as negative publicity about a firm can create goodwill impairment, as can the reduction in brand name recognition!
Various accounting standard boards require companies to conduct annual goodwill impairment tests based on proper and accepted methodologies. Evans & Evans is familiar with the methodologies and has substantial experience in working with clients in wide range of industries to assist with their annual goodwill impairment testing.
By engaging the Evans & Evans team we can:
- Provide management with the access to experienced professionals familiar with the newest standards
- Support management’s impairment testing needs as they arise
- Save clients time and money in dealing with these matters
- Help reduce corporate risk for companies regarding this issue