Archivos diarios: octubre 13, 2023

Since this is below the carrying value on ABC’s books, an impairment loss must be recorded. ABC Company acquired XYZ Company several years ago and recorded $2 million of goodwill. ABC tests this goodwill for impairment annually as required under accounting standards. A loss refers to a reduction of value due to an expense or […]

Adjusted ratios can then be calculated excluding the impairment losses/write-downs to better gauge operating performance trends over time. An impairment loss refers to a reduction in the recoverable amount of a company’s long-term assets below their carrying value on the balance sheet. It is recognized when events or changes in circumstances indicate that an asset’s […]