Carrying value = $1,010 including $300 goodwill ($710 net assets) Fair value = $950 including $75 goodwill ($875 net assets) Goodwill impairment = $225 After the $225 goodwill impairment is recognized, what will be the carrying value? 1. $710 + $75 = $785 (which is less than $950 fair value) OR 2. net assets also revalued concurrently by $165 (=$875-$710) so that the new carrying value becomes $950 (fair value). but this would not apply under US GAAP (upward revaluation)!? thanks!
Goodwill impairment only involves a goodwill write-down. Fair value of net assets doesn’t change.