Asset impairment testing procedure is one of the most common accounting issues that requires asking judgments and assessments from preparers of accounting materials, which inevitably lead to some degree of variability of information in financial statements. When testing the goodwill for impairment situation is compounded also by the specificity of a given asset, such as its unique intangible characteristics, as the allocation of goodwill between the units generating cash, forecasting of cash flows of the units generating cash, timing of tests for impairment, the adoption of the final calculation of the recoverable value of the units generating cash, estimation of non-controlling interest of the units generating cash, disposals of portion of the units generating cash to which a goodwill was allocated, and also restructuring of the units generating cash.
Keywords: goodwill, goodwill impairment, financial reporting, accounting information interpretation, IFRS, professional judgment, business combination, non-controlling interest, educated estimates
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