1. What is the nature of an impairment, how it occurs, how it is measured and how it affects the accounting equation.

2.Consider the given information for the company General Mills. Assume that sales in the periods of February and March of 2020 tripled compared to the prior year and for previous months sales were barely lower than the prior year. Hypothesize whether or not General Mills will have a problem with the valuation of Goodwill for the brand Progresso for the 2020 fiscal year.

 

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Our annual goodwill and indefinite-lived intangible assets test was performed on the first day of the second quarter of fiscal 2019. As a result of lower sales projections in our long-range plans for the businesses supporting the Progresso, Food Should Taste Good , and Mountain High brand intangible assets, we recorded the following impairment charges: Impairment Charge Fair Value as of In Millions Nov. 25, 2018 (a) Progresso $ 132.10 $ 330.00 Food Should Taste Good 45.10 Mountain High 15.40 Total $ 192.60 $ 330.00 Our annual goodwill and indefinite-lived intangible assets test was performed on the first day of the second quarter of fiscal 2019. As a result of lower sales projections in our long-range plans for the businesses supporting the Progresso, Food Should Taste Good , and Mountain High brand intangible assets, we recorded the following impairment charges: Impairment Charge Fair Value as of In Millions Nov. 25, 2018 (a) Progresso $ 132.10 $ 330.00 Food Should Taste Good 45.10 Mountain High 15.40 Total $ 192.60 $ 330.00

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1 What is the nature of an impairment how it occurs how it is measured and how it affects the accounting equation An impairment loss is the amount by ... View the full answer