economicz

Goodwill Impairment (for Intercorporate Investments) writedown calculation has a difference between US GAAP and IFRS.

Two step method in US GAAP:
Step 1: Is the Fair Value < Book Value? Yes then there is Impairment.
Step 2: Recalculate the goodwill based on the new numbers - FairValue, Bookvalue.
Impairment Amount = Old goodwill - New Goodwill.

One Step in IFRS:
FV - BookValue is the Loss that would be written off in Goodwill.

CP