Impairment of goodwill is an accounting expense that occurs when the fair value of goodwill falls below its previously recognized cost since acquisition.
Goodwill is an intangible asset that exceeds the purchase price of another company based on its property or intellectual property, brand awareness, patents, etc., which is not easily measured.
Impairment may arise if the acquired assets no longer produce the financial results that were previously expected from them at the time of purchase.
Goodwill impairment test in accordance with generally accepted accounting principles (GAAP) must be carried out at least annually.
Accountability is the acceptance of responsibility for one’s actions. This implies a willingness to be transparent, allowing others to observe and evaluate their work.
Accounting policies are the procedures a company uses to prepare financial statements. Unlike accounting principles, which are rules, accounting policies are the standard for following those rules.
Acquisition accounting is a set of formal guidelines describing how the acquirer should report the assets, liabilities, non-controlling interests and goodwill of the acquired company.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.