Impairment Testing

Article link: https:/Awww.journalofaccountancy.comVissues/2012/dec/20126497.html

1. Defines impairment, goodwill and qualitative assessment.
2. Provides a journal entry to record an impairment and an explanation of its impact on financial statements.
3. Discusses the benefits of impairment recording to financial statement users.
4. Discusses the qualitative assessment option and the factors entities should consider before performing a qualitative

assessment.

1. Discusses the motivation for using a qualitative test for impairment.
2. Discusses how impairment testing will impact the firm and users of financial statements.

Sample Solution