Glossary
Goodwill Impairment
Goodwill impairment is the write-down recorded when the goodwill on a company's balance sheet, usually created by a past acquisition, no longer supports its recorded value. Because goodwill is not amortized under most current standards, an impairment test is the mechanism that reduces it: private Canadian companies test under ASPE Section 3064, while IFRS reporters follow IAS 36 and generally test annually rather than only when a trigger arises. Our goodwill impairment testing guide compares the two frameworks in detail.
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