As we head for the New Year, identifying goodwill impairment is fast becoming a crucial activity for year-end filers and, indeed, for public and private companies at all stages of reporting.

The recent economic avalanche has brought about a great many challenges, and we can add one more to the mix:  businesses that have made acquisitions in the last few years and are carrying significant amounts of intangibles and goodwill on their books may suddenly find that the fair value of their reporting units have declined significantly, resulting in a potential write-down.

While it may be difficult to swallow such a hit (which could occur despite strong sales and effective operations management), avoiding the issue can worsen the situation significantly.

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