You have just been hired as the controller of a corporation. You have been asked to review the financials. As part of this process you notice that there is goodwill of $5,000,000 on the books based on the purchase of a company 3 years ago. No adjustments have been made in the last 3 years. You are concerned that the goodwill could be overstated.

What action would be required if you are a publicly traded corporation, and how would the loss appear on the income statement?