Goodwill Impairment: The Significance Of Goodwill Impairments

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Abstract
This paper will cover the facts about goodwill impairments and how it has a big effect on companies. In the past, goodwill was not commonly purchased from company to company but since it is there have been come changes in statements issued in FASB. This will also be discussed in this paper. Of course, goodwill is considered an intangible asset therefore I will be sure to explain the significance of these types of assets. After reading this paper you will be able to have discussions about goodwill with great knowledge.
Introduction
According to quite a reliable source goodwill can be defined as a intangible asset which is recognized as a part of an organized part of a business combination. It commonly represents the difference between the total fair value of an acquired business and the fair value of its identifiable net of assets.

Intangible Assets
In definition, first let’s break down what an intangible asset is. Intangible assets are not tangible meaning they are not able to be physically touched which makes them long-lived. …show more content…

Its was founded that goodwill and other intangibles were quickly superseding APB Opinion No.17, Intangible Assets. The statement recognizes that these assts should be grouped together when recognized and placed in financial statements as they are acquisitioned. The statement also discusses how goodwills should recognized on financial statements unless it has be incurred.
This need was initially noticed when analysts, financial statement users, and company employees in management continuously found that goodwill was become more common. It is an increasingly important economic resource that helps entities and affects assets by being an increasing portion of many transactions. With better information in this area not only revenue can increase but also the lack of information, which also affects analyzing investments, can

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