On December 27, 2016 Toshiba Corporation announced the possibility of a goodwill impairment charge related to its U.S. nuclear power plant construction business, which was acquired for $229 million in late 2015 by Toshiba’s Westinghouse Electric Company subsidiary.  Karolina Calhoun, senior financial analyst with Mercer Capital, describes that both the buyer and target have been plagued by financial difficu ...

Understanding the Language of Chapter 11 Cramdown This article will examine terms of art used in a Chapter 11 cramdown. These terms go hand in hand during a contested or cramdown hearing. The court will work to assure that the bankruptcy definition of these terms is met before confirming a plan. Any expert expecting to testify at a cramdown hearing should have a working knowledge of their meaning. ...

What is the effect of goodwill impairment charges when comparing large cap stocks versus small cap stocks?  Robert Richardson, a financial analyst with Mercer Capital, examines if higher equity markets have rendered impairment a thing of the past. Find out more in the Mercer Capital's Financial Reporting article, Small Cap Goodwill Impairments on the Rise. This article is republished from Mercer Capital's F ...

Particular challenges can arise in goodwill impairment valuation and accounting when a company acquires a business located in another country.   When goodwill accounting standards are strictly applied, under U.S. GAAP or IFRS, the differences between write-offs taken in one country versus another should be minimal. This article delves into some of the notable differences in goodwill impairment conclusions w ...

Should Losses Trigger an Immediate Charge or Later Write Down? The Financial Accounting Standards Board (FASB) is engaged in an interesting discussion with the International Accounting Standards Board (IASB) regarding how quickly bad loans need to be recognized by banks. Here’s the essence of the dispute. ...