Question
Qualcomm Inc. engages in the development, design, manufacture, and marketing of digital wireless telecommunications products and services. In its 2011 income statement the company reported
Qualcomm Inc. engages in the development, design, manufacture, and marketing of digital wireless telecommunications products and services. In its 2011 income statement the company reported a $114 million goodwill impairment charge. The charge related to the goodwill of its Firethorn reporting unit. Required: 1. Why did Qualcomm conduct an impairment test of the goodwill of these reporting units? 2. Describe the steps Qualcomm performed to conduct its impairment test. 3. Where would the impairment charge be shown in the company's income statement?
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