Alomar Co., a consolidated enterprise, conducted an impairment review for each o

Question

Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Sellers, emerged as a candidate for possible goodwill impairment. Sellers has recognized net assets of $1,008, including goodwill of $600. Seller’s fair value is assessed at $978 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $132 and $142, respectively). The following table summarizes current financial information for the Sellers reporting unit:

Determine the amount of any goodwill impairment for Alomar’s Sellers reporting unit.

After recognition of any goodwill impairment loss, what are the reported book values for the following assets of Alomar’s reporting unit Sellers?

Tangiblie Assets, net ? Its not 179

Goodwill 198 is correct

Patent? The answer is not 132

Customer List ? The answer isnt 142

Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Sellers, emerged as a candidate for possible goodwill impairment. Sellers has recognized net assets of $1,008, including goodwill of $600. Seller’s fair value is assessed at $978 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $132 and $142, respectively). The following table summarizes current financial information for the Sellers reporting unit:

Explanation / Answer

After Impairment of Goodwill Book Values of the other assets are as follows

Tangible Assets = $134

Goodwill = $198

Recognised Intangible Assets = $274   

Patent = Nil

Customer List = Nil

Only those assets are to be impaired whose fair value is less than Carrying Amount

Where the assets's carrying amount is less than the fair value of asset then it will not be revalued.

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