Goodwill Impairment: Why It Must Be Tested at the Cash-Generating Unit Level
Is goodwill still being carried in the financial statements as though it were automatically worth its original amount? Goodwill cannot generate cash flows independently. It must be allocated to a Cash-Generating Unit (CGU), or a group of CGUs expected to benefit from the synergies of the business combination, and tested together with that CGU. How […]