U.S. public companies this year are expected to write down more goodwill than last year as they contend with the financial fallout from Russia’s war in Ukraine and persistent high inflation.
Companies report goodwill on their balance sheets when they buy a business for more than the value of its net assets. The acquiring business must measure the fair value of its reporting units annually. If that figure is less than the amount recorded on the books, the company reduces the value of the goodwill.
Pre-tax goodwill impairments totaled $8 billion in 2021, based on a review of filings through Monday—at which point about 47% of 8,900 public U.S. companies had filed their annual reports, according to Kroll LLC, a risk-consulting firm formerly known as Duff & Phelps LLC. READ THE REST HERE