← Back to Glossary
Goodwill Impairment
Definition
A non-cash charge recorded when the carrying value of goodwill on the balance sheet exceeds its estimated recoverable amount. Goodwill impairment testing, required annually under IFRS and US GAAP, often signals that the intangible value anticipated at the time of acquisition — including synergies, customer relationships, and growth potential — has not been realised.
Related Terms
General Partner (GP)
Go-to-Market (GTM) Strategy
Goodwill
Gross Margin
Gross Revenue Retention (GRR)
Related FAQ
What is goodwill impairment and when does it occur?
Goodwill impairment occurs when the fair value of a business unit (cash-generating unit) falls below its carrying amount — goodwill is written down, reducing reported earnings.
Read full answer →Put this knowledge to work
Use Opagio's free tools to measure and grow the intangible assets that drive your business value.