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Jericho Company recently acquired three business recognizing goodwill in each aquisition. The acquired goodwill was allocates to the three reporting units: Apple, Banana, and Carrot.
Jericho Company recently acquired three business recognizing goodwill in each aquisition. The acquired goodwill was allocates to the three reporting units: Apple, Banana, and Carrot. Jericho provides the following information in performing the 2012 annual review for impairment.
Carrying Value. Fair Value reporting unit
Apple Tangible Assets 300000. 320000. 525000
Trademarks. 20000. 10000
Licenses. 85000. 90000
Liabilities. 20000. 20000
Goodwill. 130000. ?
Banana. Tangible Assets. 250000. 400000. 450000
Trademarks. 25000. 50000
Licenses. 18000. 18000
Goodwill. 140000. ?
Carrot. Tangible Assets 120000. 120000. 215000
Unpatented Technology. 0. 50000
Customer List. 35000. 45000
Goodwill. 75000. ?
Which of Jerichos reportinf units require both steps to test goodwill impairment?
How much goodwill impairment should Jericho report for 2012?
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The AICPA Audit Committee Toolkit Private Companies
Authors: AICPA
2nd Edition
1940235464, 978-1940235462
