Goodwill impairment

💼 Business By CampusDown Wiki Editorial Team Last updated October 23, 2026

Goodwill impairment writes down acquisition goodwill when the recoverable amount falls below carrying amount. IFRS bans amortization and requires annual tests.

Contents

1. Overview
2. Comparison
3. Frequently asked questions
4. References

Overview

Goodwill = consideration minus fair value of net assets acquired.

📌 At a glance

Unit: CGU
Reversal: Prohibited

Comparison

Standard	Amortization
IFRS/K-IFRS	None
US GAAP	None (private-company option: up to 10 years)
Japan GAAP	Up to 20 years

Kraft Heinz’s 2019 write-down of about $15.4 billion sent its shares down over 20% in a day. Big impairments admit overpayment.

Frequently asked questions

Does impairment hit cash?: No; it is non-cash.

References

IFRS Foundation, IAS 36 Impairment of Assets; IFRS 3 Business Combinations (ifrs.org).
한국회계기준원, K-IFRS 제1036호 「자산손상」, 제1103호 「사업결합」.
FASB ASC 350 Intangibles—Goodwill and Other; ASU 2017-04 (Simplifying the Test for Goodwill Impairment); ASU 2014-02 (private company alternative).
企業会計基準委員会「企業結合に関する会計基準」（企業会計基準第21号）第32項、「固定資産の減損に係る会計基準」.
中华人民共和国财政部《企业会计准则第8号——资产减值》.

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This article was last updated on October 23, 2026. It is based on widely recognized original works and textbooks; when citing it in a paper, please check the original sources listed in the references.