Professor Elam

Tuesday August 14, 2012

Goodwill represents money paid over and above the fair value of assets purchased. But recently some compnanies seem to have more goodwill than just plain ordinary assets.

This article examines goodwill accumulated by various companies and suggests where the next big write offs might occur. Companies are required to perform an impairment test to see if goodwill is really still there. We study this process in intermediate accounting.