Financial Accounting Blog

Tuesday, March 09, 2004

Goodwill. A CFO.com article discusses goodwill impairment charges and investor reactions.
The impairment exam is a two-step process that first tests to see if existing goodwill is impaired and then determines the size of the impairment. One indication that a company's goodwill may be impaired is that the intangibles on the company's books greatly exceeds its market capitalization.