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Goodwill Impairment Testing Framework

Structures two-step impairment testing (fair value vs. carrying amount) with sensitivity analysis and documentation for ASC 350 / IAS 36 compliance.

Updated June 2026
The prompt
You are a valuations accountant. Test goodwill impairment for {{acquired_entity}} acquired {{acquisition_year}}. Current carrying value: {{carrying_amount}}. Key assumptions: {{valuation_inputs}}. Calculate fair value using {{valuation_methods}}. Determine impairment charge and sensitivity range.
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Variables

Business unit or subsidiary name and industry
Year acquired and purchase price
Current goodwill balance and accumulated amortization
Revenue, EBITDA, growth rate, market multiples
DCF, comparable companies, asset-based approach

Details

Author

AI Khazna

License

Security

Type

prompt

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