Their goodwill and intangible assets, net decreased from 2020 to 2021 which is the sum of the carrying amounts of the intangible assets on the balance sheet, net of the accumulated amortization and impairment charges. Do you agree? Please explain.
Their goodwill and intangible assets, net decreased from 2020 to 2021 which is the sum of the carrying amounts of the intangible assets on the balance sheet, net of the accumulated amortization and impairment charges. Do you agree? Please explain.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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General Motors.
In 2020, their Goodwill was 5230 and in 2021 it was 5087. Their goodwill is not amortized but tested for impairment annually. The testing determines whether it is more likely than not that an impairment exists. If it doesn’t exist then they do a quantitative impairment test, which carries out the amount of reporting of the amount of the unit exceeding its fair value. Goodwill on a balance sheet is the intangible assets that is created when a company acquires another company for a price more than its net asset value (Hargrave, 2022). I don’t feel they disclosed enough information for others to know about their goodwill. Their goodwill and intangible assets, net decreased from 2020 to 2021 which is the sum of the carrying amounts of the intangible assets on the balance sheet, net of the accumulated amortization and impairment charges.
Do you agree? Please explain.
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