Answered step by step
Verified Expert Solution
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started