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    homegr0wn's Avatar
    homegr0wn Posts: 2, Reputation: 1
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    #1

    Oct 22, 2008, 11:25 AM
    Combining Reporting Units
    I have read through FAS 141 and 142, but I can't seem to find an answer to this:
    If a company acquires another company with 4 reporting units, can those reporting units and their goodwill be combined into a single goodwill account, such as "enterprise goodwill"? Also, once goodwill is impaired, what is the account method used once impairment no longer exists? Will the goodwill remain at the impaired level, and any recovery of impairment is not recognized?
    Thanks for any help.
    MF Controller's Avatar
    MF Controller Posts: 25, Reputation: 2
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    #2

    Oct 22, 2008, 04:53 PM
    It would depend on how they were acquired. Are they acquired as separate entities (i.e. corporations, subsidiaries) or absorbed by one company LLC?
    homegr0wn's Avatar
    homegr0wn Posts: 2, Reputation: 1
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    #3

    Oct 22, 2008, 07:07 PM

    They are 4 separate reporting units within one company being acquired by one company.
    MF Controller's Avatar
    MF Controller Posts: 25, Reputation: 2
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    #4

    Oct 29, 2008, 11:15 AM

    I would leave them at the unit level and let them roll up into the consolidated reporting. This is because it show a clearer pic of the financials for each unit
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