Goodwill Impairment Testing: A Hands-On Guide Self-Study Webinar (5 Hours)

Overview: 

Companies with recorded goodwill in their financial statements are required to conduct annual goodwill impairment testing. Without sound knowledge of the mechanics to perform the assessment in accordance with the accounting literature, and acceptable to auditors, the resulting process becomes a time-consuming, frustrating and stressful exercise. This hands-on, problem-solving self-study webinar will:

  • Enable you to view impairment assessment through the eyes of the auditor to ensure your company prepares acceptable levels of documentation and reaches the appropriate conclusions
  • Explain the fair value theory of performing goodwill impairment assessments
  • Prepare you to conduct a more thorough job in testing goodwill for impairment, or reviewing a valuation professional’s conclusions
  • Share the views of the SEC and PCAOB
Objective: 

To provide CPAs with the knowledge and skills to perform goodwill impairment testing acceptable to auditors, and reach appropriate conclusions with respect to whether goodwill is impaired. Plus, this self-study webinar will help you gain an understanding of the theory underpinning testing, and provide examples of acceptable documentation of the process.

Emphasis: 
  • What is goodwill?
  • How do you perform goodwill impairment testing?
  • What support do auditors require for goodwill impairment analysis?
  • An overview of reporting units
  • The qualitative assessment
  • A checklist for the qualitative assessment
  • Determining the fair value of the reporting unit
  • Examples of different methods to determine the fair value of reporting units

Recognize the progression of the accounting treatment of goodwill, from pre FAS 142 to today

Identify the reasons behind those who support a change in the current goodwill impairment model

Identify possible FASB approaches to subsequent accounting for goodwill

Identify the unit of account for goodwill impairment testing purposes

Recognize the concepts behind the market approach, the income approach, and the asset (cost) approach to valuation

Recognize the methodology behind the determination of the fair value of a reporting unit

Identify the most reliable evidence of fair value within the fair value hierarchy

Identify characteristics of the different approaches to valuations

Recognize characteristics of reporting units

Recognize the methodologies for assigning assets and liabilities to reporting units

Recognize the frequency with which goodwill must be tested for impairment

Identify the basis for which a qualitative assessment of goodwill impairment is approached

Identify relevant events and circumstances affecting a reporting unit’s fair value

Recognize the implications of controlling and noncontrolling interests when assessing fair value of a reporting unit

Recognize the risks associated with the use of the discounted cash flow technique in valuations

Recognize the relative significance of the terminal value when using the discounted cash flow technique in valuations

Identify necessary adjustments to prospective financial information when using the income approach to valuation

Identify the effect of the tax amortization benefit (TAB) when using the income approach to valuation

Identify the appropriate methodology when using market approach valuation multiples

Bottom
Price: 
$129.00
Prerequisite: 

None.

Preparation: 

No advance preparation required.

Level of Knowledge: 

Overview.

CPE Credit: 
5.00
NASBA Field of Study: 
Accounting