DIVINE COMPANY

1. After properly adjusting the goodwill for impairment, which of the following represents
the adjusted amount of goodwill for the reporting unit Networking?

Networking
Segment carrying amount including goodwill 3,000,000
Estimated total fair value of segment -2,800,000
Impairment loss - all allocated to goodwill 200,000

Goodwill 500,000
Impairment loss -200,000
Carrying amount of goodwill 300,000

2. After properly adjusting the goodwill for impairment, which of the following represents
the adjusted amount of goodwill for the reporting unit Telecommunications?

Telecommunications
Segment carrying amount including goodwill 2,500,000
Estimated total fair value of segment 2,900,000
Impairment loss - all allocated to goodwill -

Telecommunications unit is not impaired. Therefore, the carrying amount (P500,000) of

goodwill is not affected.
GOLD COMPANY
Carrying Amount Implied Value Loss
Retailing 300,000 250,000 50,000
Service 200,000 100,000 100,000
Financing 400,000 600,000 -
Total Impairment Loss 150,000

1. What is the impairment of goodwill attributable to Financing unit? 0

2. What is the impairment of goodwill attributable to Service unit? 100,000
3. What is the impairment of goodwill attributable to Retailing unit? 50,000