According to the 2014 U.S. Goodwill Impairment Study, U.S. public companies recorded $21 billion of goodwill impairment (GWI) in calendar year 2013, representing a 59 percent decline from the $51 billion reported in 2012. In addition, the number of GWI events fell by 18 percent, resulting in an average impairment amount of $108 million for 2013, which is now approaching the average low of $86 million in 2009.
The 2013 aggregate impairment amount was the lowest level seen since 2008, at the height of the financial crisis, and is also consistent with generally observed U.S. macroeconomic trends. The U.S. economic outlook continued to improve in 2013 and was accompanied by an exceptional performance by U.S. stock markets. In fact, the S&P 500 Index level surged by 30% in 2013, its biggest annual advance since 1997 in percentage terms.
Financial Executives Research Foundation (FERF), in collaboration with Duff & Phelps, conducts an annual survey on this topic. Now in its seventh year, the survey continues to examine industry trends for goodwill and goodwill impairment of U.S. companies, to gauge the breadth of Step 0 testing and the extent of adoption of the PCC accounting alternatives for goodwill and intangible assets.
Please click here and take 5 minutes to complete this year’s survey. All responses are strictly confidential and anonymous. If a question does not apply to your company, or asks for information that you do not have, simply skip it. Also, participants who complete the survey will be invited to a special, complimentary webcast to analyze the results and answer your questions. Stay tune. You will not want to miss this!
Still not convinced you should take the survey? How about a free airfare incentive? Survey respondents will be eligible to enter a drawing where one lucky winner will receive two United Airlines economy domestic air vouchers eligible for travel to/between U.S., Alaska, Canada, the Caribbean and Mexico.
The FERF Executive Report analyzing the survey results will be available at the 34th Annual Current Financial Reporting Issues (CFRI) conference on November 16 – 17, 2015 at the Marriott Marquis, NYC.