Follow & Subscribe Us for recent updates
LinkedIn
Instagram
Youtube
Your 360° Valuation Partner
Our Locations:
Delhi
D-38, 1st Floor, South Extension-I
Mumbai
Chennai
Nagpur
Delaware, USA
A venture of Corporate Professionals
Goodwill represents the future economic benefits arising from assets that cannot be individually identified and separately recognized. Businesses are required to periodically assess whether the carrying amount of goodwill remains recoverable in accordance with applicable accounting standards. Our experts provide independent and reliable goodwill impairment testing services to help organizations determine the recoverable value of goodwill, comply with financial reporting requirements, and ensure the accurate presentation of asset values in their financial statements.
Goodwill impairment testing is performed annually to assess whether the carrying value of goodwill remains recoverable and fairly reflected in the financial statements.
Supports compliance with Ind AS 36 by assessing goodwill for impairment and determining whether any impairment loss needs to be recognized.
Helps organizations meet the impairment testing requirements prescribed under IFRS for goodwill arising from business combinations.
Goodwill recognized on acquisition is tested periodically to ensure its carrying amount reflects the future economic benefits of the acquired business
Following a PPA exercise, impairment testing evaluates whether the goodwill recognized continues to be supported by the performance of the cash-generating unit.
Assists in evaluating the recoverability of goodwill created through acquisitions, supporting post-transaction financial reporting and strategic decision-making.
Determines the recoverable amount of an asset by estimating the present value of the future cash flows expected to be generated from its continued use and eventual disposal.
Measures the recoverable amount based on the fair value of the asset less the incremental costs directly attributable to its disposal.
Projects the future cash flows expected from the asset or cash-generating unit and discounts them to their present value using an appropriate discount rate.
Estimates the recoverable value by considering market evidence, comparable transactions, and observable market data for similar assets where available.
Ultimate Guide to ESOP What is ESOP? An Employee Stock Option Plan (ESOP) or Employee...
1. Introduction India introduced Ind AS (Indian Accounting Standards) to bring Indian financial reporting closer...
A startup may not own large factories or have decades of profits, yet it can...
Answers for business owners who want to understand the process before speaking with an expert.
Goodwill valuation determines the value of goodwill at the time of a business acquisition, whereas goodwill impairment testing assesses whether the recorded goodwill remains recoverable in subsequent reporting periods and whether any impairment loss should be recognized.
A goodwill impairment assessment typically requires financial statements, cash flow projections, budgets, business plans, purchase price allocation (PPA) reports, details of cash-generating units (CGUs), and relevant market and industry information.
The recoverable amount is generally determined using the higher of the Value in Use (VIU) and Fair Value Less Costs of Disposal (FVLCD). These methods estimate the economic value of the cash-generating unit to which goodwill has been allocated.
Yes. Under Ind AS 36 and IFRS, goodwill is required to be tested for impairment at least annually, or more frequently if there are indicators suggesting that its carrying amount may no longer be recoverable.
If the carrying amount of goodwill exceeds its recoverable amount, an impairment loss is recognized in the financial statements in accordance with the applicable accounting standards. Once recognized, impairment losses on goodwill generally cannot be reversed under Ind AS and IFRS.
India's most trusted SEBI Cat-I Merchant Banker & IBBI Registered Valuer Entity. 3000+ valuations delivered. Certified reports in 7 business days.
Join our newsletter to stay up to date on the latest notifications and updates.
