Definition for : Impairment test
The annual goodwill assessment is carried out by means of impairment tests. If the Market value of goodwill is below its Book value, goodwill is written down (see write-down) to its fair Market value and a corresponding impairment loss is recorded on the Income statement. See also Goodwill amortisation.
(See Chapter 6 Getting to grips with consolidated accounts of the Vernimmen)
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