If it is more likely than not that the fair value of a reporting unit is lower than its carrying value, goodwill must be tested for impairment in between annual dates. Given the pervasive impact of the global pandemic, how shall companies estimate the recoverable amounts of their reporting units and measure any impairment risk?
Our valuation professionals can help you perform an independent assessment of the potential impact of COVID-19 on the expected cash flows and the appropriate level of discount rate to be used in measuring any impairment of non-financial assets.
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Mary Jade T. Roxas-Divinagracia, CFA, CVA
Deals and Corporate Finance Managing Partner, PwC Philippines
Tel: +63 (2) 8845 2728
Darwin B. Saribay, CFA
Deals and Corporate Finance Partner, PwC Philippines
Tel: +63 (2) 8459 3438