Module V· Goodwill - Subsequent Treatment & ImpairmentIntermediate
Question
Which triggering events require interim goodwill impairment tests?
Answer
Triggering events include major underperformance, loss of key customers, adverse market changes, higher discount rates, lower share price / market cap, restructuring, regulatory changes, failed integration, or disposal plans. If indicators exist, the company must test impairment before the annual cycle. In M&A, impairment shortly after a deal signals overpayment or failed deal thesis.