What are some of the reasons for the impairment of intangible assets such as Goodwill? What are some justifications for treating the write-down as a permanent decline in value of the asset(s)?

• What are some justifications for considering that there has been a permanent increase in the value of the asset(s)?
  • A difference between the book value and the fair value often exists.

• What role do technology advances and obsolescence have in deciding that assets have been impaired?
  • Should both decrease and increases in the asset(s) value be reported in the financial statements? Why or why not?

Answer rating: 100% (QA)

Reasons for Impairment of Intangible Assets such as Goodwill 1 Changes in Market Conditions Fluctuations in the market conditions such as a decline in customer demand increased competition or changes ... View the full answer