Goodwill Impairment Testing In Egypt Under IAS 36

In today’s complex business world, companies are under more and more pressure from all types of investors, auditors, regulatory bodies, and other stakeholders in relation to carrying amounts stated in their accounting statements. When it comes to the issue of goodwill, the above-mentioned problem becomes especially acute since usually the asset constitutes one of the biggest assets recorded in a company’s financial statement and also involves much judgement on the part of accountants. It should be noted that unlike other assets, goodwill cannot be depreciated using IFRS guidelines. According to the latter, a company’s goodwill must be annually assessed for impairment using IAS 36, Impairment of Assets, as well as any time the need for the asset’s assessment emerges due to specific conditions. At first sight, the task of such assessment may appear rather simple. However, in fact it is very challenging for it requires making certain estimations, applying specific methods, and using