Apollo Company, a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Stande, emerged as a candidate for possible goodwill impairment. Stande had recognized net assets with carrying amounts totaling $1,220, including goodwill of $725. Stande's reporting unit fair value is assessed at $1,124 and includes two internally developed unrecognized intangible assets (a patent and a royalty agreement with fair values of $274 and $79, respectively). The following table summarizes current financial information for the Stande reporting unit: Itens Tangible assets, net Recognized intangible assets, net Goodwill Unrecognized intangible assets Carrying Amounts $142 353 725 0 Fair Values $ 222 384 7 353
Apollo Company, a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Stande, emerged as a candidate for possible goodwill impairment. Stande had recognized net assets with carrying amounts totaling $1,220, including goodwill of $725. Stande's reporting unit fair value is assessed at $1,124 and includes two internally developed unrecognized intangible assets (a patent and a royalty agreement with fair values of $274 and $79, respectively). The following table summarizes current financial information for the Stande reporting unit: Itens Tangible assets, net Recognized intangible assets, net Goodwill Unrecognized intangible assets Carrying Amounts $142 353 725 0 Fair Values $ 222 384 7 353
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter16: Advanced Topics Concerning Complex Auditing Judgments
Section: Chapter Questions
Problem 65RSCQ
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