Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

wk 2-1 Please explain and provide examples In 2015, Microsoft Corporation reported a $5.1 billion charge for the impairment of goodwill and a $2.2 billion

wk 2-1 Please explain and provide examples

In 2015, Microsoft Corporation reported a $5.1 billion charge for the impairment of goodwill and a $2.2 billion charge for the impairment of intangible assets in one of its reporting units (segments) in its 10-K annual report. Referring to Microsoft's 2015 financial statements and any other information from the media, address the following:

  • Microsoft's segments serve as its reporting units for assessing goodwill for potential impairments. Which segment suffered a 2015 impairment? Describe the revenue model for this segment.
  • What were the underlying business reasons that required Microsoft to record a goodwill impairment in 2015?
  • How did Microsoft reflect the 2015 goodwill impairment in its income statement and cash flow statement?
  • Describe the goodwill impairment testing steps performed by Microsoft in 2015 and the consequent loss measurement.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Financial Accounting

Authors: Kermit Larson, John Wild

20th Edition

77338235, 978-0077619442

More Books

Students also viewed these Accounting questions