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6 Points Some commentators argue that the frequency of goodwill write-offs is evidence that firms tend to overpay when acquiring other companies. In fiscal 2020, shareholders in Australian building products group Boral missed out on a final dividend for the first time in 31 years as profits tumbled and the group took a $1.07 billion impairment of goodwill related to its US operations. New Boral chief executive Zlatko Todorcevski suggested that previous management under the former chief executive had paid too much in the $3.5 billion acquisition of the American Headwaters business in late 2016. Required: 1. Explain the circumstances under which goodwill is recognised and how and when impairment of goodwill might occut. (2 marks) Enter your answer here 2. What factors might cause a company to overpay' for an acquisition target? How doeft overpayment affect the calculation of goodwill? Could these factors lead to overstatement of the value of assets other than goodwill? (2 marks) Enter your answer here 3. Explain why a significant goodwill write-off may or may not signal a 'flawed investment strategy. (2 marks) Farbete